MINE  BOOKKEEPING 


MINE  BOOKKEEPING 


A  COMPREHENSIVE  SYSTEM   OF  RECORDS  AND 

ACCOUNTS  FOR  MINING  OPERATIONS 

OF  MODERATE  DIMENSIONS 


BY 

ROBERT  McGARRAUGH,  E.M. 


First  Edition 
Second  Impression 


McGRAW-HILL  BOOK  COMPANY,  Inc. 
NEW  YORK:  370  SEVENTH  AVENUE 

LONDON:  6  &  8  BOUVERIE  ST.,  E.  C.  4 

1920 


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f^mWQ  DEPT. 

Copyright,  1920,  by  the 
McGraw-Hill  Book  Company,  Inc. 


PRINTED    IN    THE    UNITED   STATES    OF    AMERICA 


^^f  /      4-3     I 


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THE  MAPLE  PRESS  COMPANY,  YORK,  I'A. 


PREFACE 

This  book  has  been  prepared  in  the  belief  that  a  real  need 
exists  among  engineers  and  operators  for  a  comprehensive 
outline  of  bookkeeping  and  accounting  methods,  applicable 
to  the  requirements  of  mining  operations  of  modest  size. 
At  the  beginning,  it  can  be  stated  with  conviction  that  neither 
the  perfect  system  of  accounting  nor  the  perfect  set  of  ac- 
counts has  yet  been  produced,  at  least  as  applied  to  the  mining 
industry.  A  timely  word  of  caution  is  extended  to  the  reader 
against  the  too  literal  acceptance  per  se  of  the  forms  and 
records  as  given.  Each  individual  case  presents  its  own  set 
of  conditions,  to  which  the  records  must  be  adapted,  and  the 
various  forms  should  be  regarded  as  suggestive  rather  than 
constituting  a  definite  outline  to  be  followed  under  all  circum- 
stances. In  the  following  pages,  a  knowledge  of  the  principles 
of  simple  bookkeeping  has  been  assumed. 

Acknowledgment  has  been  made  wherever  the  writer  is 
aware  that  material  has  been  gleaned  from  books  and  maga- 
zine articles  on  the  subject,  but  as  the  methods  outlined  have 
been  gradually  developed  in  practice,  no  doubt  the  written 
ideas  of  others  have  been  taken  in  some  instances,  while  the 
sources  of  information  are  now  forgotten.  Special  acknowl- 
edgment is  made  to  Mr.  W.  H.  Charlton,  whose  excellent 
work,  "American  Mine  Accounting,"  has  been  a  valuable 
reference  in  the  preparation  of  this  small  volume. 

Robert  McGarraugh. 

CopPERHiLL,  Tennessee, 
January,  1920. 


872880 


CONTENTS 

CHAPTER  ONE 

Introduction 1 

Objects  in  View — Classification  of  Accounts — Capital  and  Suspense 
Accounts — Amortization — Depreciation — Operating  Expenses. 

CHAPTER  TWO 

Outline  of  Accounts 9 

General  Mine  Accounts — Current  Capital  Charges — Suspense  Accounts — 
Other   General  Ledger   Accounts — Diagrams — Definitions   of   Accounts. 

CHAPTER  THREE 

Outline  of  Essential  Records 20 

General  Office  Records  of  Accounts — Timekeeper's  Records — General 
Office  Records  of  Supplies — Warehouse  Records. 

CHAPTER  FOUR 

General  Office  Records  of  Accounts 24 

Cash  Journal — Petty  Cash — Cash  Vouchers — Journal-entry  Vouchers — 
General  Distribution — General  Ledger — Individuals  and  Companies 
Ledger — Invoice  Record — Side  Ledger  of  Capital  Charges. 

CHAPTER  FIVE 

Time-keepers'  Records 47 

Office  Time  Book — Foremen's  Time  Books — Time  Tickets — Labor  Dis- 
tribution— Force  Account  Pay-rolls — Contractors'  Pay-rolls — Pay  Envel- 
opes— Voucher  Pay-checks. 

CHAPTER  SIX 

General  Office  Records  of  Supplies 59 

Purchase  Orders — Local  Purchases — Supplies  on  Hand  and  on  Order — 
Register  of  SuppUes  Ordered — Cost  Book. 

CHAPTER  SEVEN 

Warehouse  Records 67 

Way-bills — Stock  on  Hand  Index — Stock  Books — W^arehouse  Requisi- 
tions— Requisitions  for  Bills-of-Material — Materials  Returned — Sup- 
plies Distribution — Inventories. 

vii 


viii  CONTENTS 

CHAPTER  EIGHT 

Monthly  Statements 76 

Cost  Statement — Comparative  Costs  for  Year-to-Date — Mining  &  Metal- 
lurgical Statement — Receipts  and  Disbursements — Outstanding  Checks — 
Accounts  Payable  and  Accounts  Receivable — Trial  Balance. 

CHAPTER  NINE 

Records  and  Reports  of  Daily  Operations 86 

Summary  of  Daily  Operations — Daily  Reports — Working  Face  Records. 

CHAPTER  TEN 

Miscellaneous 96 

Machinery  Index — Machine  Repair  Parts — Contract  Work — Personal 
Records — Smelter  Shipments — Records  for  New  Operations. 

CHAPTER  ELEVEN 

Mercantile  Store  Operation 105 

Operation  on  Selling  Price  Basis — Purchase  Orders — Merchandise  Regis- 
ter— Losses  and  Gains — Coupons — Charge  Accounting — Store  Accounts. 


MINE  BOOKKEEPING 


CHAPTER  ONE  *'         . 

INTRODUCTION 

Objects  in  View. 

A  comprehensive  system  of  records  and  accounts  is  the 
only  safe  foundation  upon  which  to  build  any  successful 
business.  Accounting  and  cost-keeping  as  applied  to  the 
mining  industry  constitute  a  special  field  which  cannot  be 
adequately  covered  by  any  stereotyped  outline  of  records  and 
accounts;  the  phases  of  mining  work  are  infinite  and  the 
conditions  met  with  will  require  adjustments  of  the  methods 
employed  in  almost  every  case.  To  the  mine  operator,  the 
careful  study  of  working  costs  is  essential  in  establishing  and 
maintaining  an  efficient  organization.  Suggested  improve- 
ments and  changes  are  of  frequent  occurrence,  and  these  can 
only  be  considered  in  relation  to  the  reduction  in  operating 
expenses,  or  to  the  increase  in  output,  which  will  be  effected. 
Once  established,  a  cost  system  serves  as  a  gauge  to  deter- 
mine the  relative  value  of  the  results  which  are  being  obtained. 
After  the  work  in  any  department  is  running  smoothly,  with 
waste  in  effort  and  materials  eliminated,  it  should  be  a  com- 
paratively easy  matter  to  maintain,  or  perhaps  to  exceed,  the 
standard  of  economy  which  has  been  set .  By  keeping  cost  data 
always  in  evidence,  a  healthy  state  of  rivalry  may  be  estab- 
lished in  every  branch  of  the  work;  each  department  head  is 
given  an  incentive  to  keep  down  expenses  and  to  increase  the 
efficiency  of  his  part  of  the  organization.  Present  results  can 
be  compared  with  those  obtained  during  previous  periods; 
waning  effort  or  wasteful  methods  will  soon  be  detected.  Such 
a  condition  of  rivalry  is  invaluable  in  keeping  up  general 
interest  and  in  getting  each  subordinate  to  contribute  his  best 
•  efforts  to  the  common  end. 

1 


2  MINE  BOOKKEEPING 

Information  should  be  at  hand,  in  an  easily  accessible 
form,  showing  in  detail  the  costs  of  performing  any  operation 
involved  in  the  work,  as  well  as  a  comparison  between  the 
present  cost  and  that  of  former  periods.  The  itemized  cost- 
in-place  of  any  important  piece  of  machinery,  or  of  any  other 
item  Oi  installation  or  construction,  should  be  available  with- 
out waste  of, time  in  searching  through  the  records  for  it. 
tn  Lftost  cases,  such  information,  as  a  source  of  comparison 
with  the  results  obtained  at  other  mines,  will  prove  to  be  of 
little  value.  The  principal  object  of  any  system  of  cost-keep- 
ing should  be  to  furnish  reliable  information  and  comparisons 
as  applied  to  the  work  at  hand.  The  variations  in  working 
conditions  which  prevail  in  different  districts,  and  even  among 
the  mines  of  the  same  locality,  are  sufficiently  marked  to  make 
comparisons  with  other  places  misleading.  Furthermore,  the 
details  of  cost-keeping,  and  the  classifications  in  use,  will 
differ  to  an  extent  that  comparisons  of  cost  data  from  differ- 
ent places  cannot  be  regarded  with  confidence. 

The  segregation  and  distribution  of  cost  data  is  essentially 
an  engineering  undertaking,  and,  as  such,  should  be  under  the 
supervision  of  some  one  who  is  familiar  with  all  phases  of  the 
work  and  who  clearly  understands  the  results  which  are  de- 
sired. If  left  entirely  to  clerks,  who  as  a  rule  have  compara- 
tively little  knowledge  of  the  working  conditions,  the  methods 
employed  will  inevitably  degenerate  into  a  cut-and-dried 
routine  and  much  of  the  value  of  the  accounts  will  be  lost. 
The  working  out  of  the  details  of  accounting  should  be  dele- 
gated as  much  as  possible  to  the  clerical  staff,  where  it  belongs, 
but  persistent  supervision  is  necessary  in  order  that  the  results 
shall  represent  the  existing  conditions  to  a  reasonable  degi'ee 
of  accuracy.  In  outlining  a  system  of  accounts,  the  first 
consideration  should  be  concerning  the  amount  of  detail  which 
can  be  accurately  handled.  A  comparatively  simple  set  of 
accounts,  with  the  classification  of  expenditures  accurately 
made,  is  of  incomj^aratively  greater  value  for  the  analysis  of 
costs  than  an  elaborate  subdivision,  the  details  of  which  have 
been  largely  approximated  or  guessed  at.  In  ordcT  that  the 
handling  of  accounts  does  not  become  an  onerous  burden  to 


MINE  BOOKKEEPING  3 

those  who  already  have  an  abundance  of  other  duties,  they 
should  be  made  as  concise  and  as  easily  understood  as  possible. 
The  name  used  to  designate  each  account  should  be  definite 
and  also  descriptive;  this  tends  to  avoid  confusion,  as  many 
details  will  have  to  be  left  to  shift  bosses  and  others  who  are 
not  familiar  with  the  accounts,  and  who  are  usually  not 
especially  interested  in  them. 

To  make  an  intelligent  analysis  of  the  work  at  hand,  the 
cost  of  performing  each  operation  must  be  determined  in 
terms  of  the  unit  involved;  this  unit  may  be  ton  of  ore  milled, 
ton  of  ore  stoped,  foot  of  drift  or  crosscut,  etc.  It  is  obvious 
that  to  be  of  economic  value,  a  saving  in  the  cost  per  ton  of 
ore  produced  must  not  be  accompanied  by  a  corresponding 
drop  in  the  grade  of  that  ore;  on  the  other  hand,  an  increase 
in  the  cost  of  production  may  be  more  than  offset  by  the  gain 
in  recovery  which  has  been  effected.  The  grade  of  ore  which 
can  be  mined  and  treated  at  a  profit  should  be  definitely  known. 
It  is  sometimes  the  case  that  this  factor  has  not  received  suffi- 
cient consideration,  or  that  it  has  not  been  kept  before  those 
who  are  responsible  for  the  actual  mining  operations.  Where 
appreciable  variations  in  mining  conditions  occur  in  different 
parts  of  the  mine,  the  grade  of  ore  which  can  be  taken  out  at 
a  profit  from  each  working  place  should  be  determined.  Ore 
which  assays  above  this  grade  can  be  profitably  mined  and 
treated;  anything  of  lower  grade  can  only  be  handled  at  a  loss 
and  should  be  left.  In  case  that  a  shortage  of  ore  which  can 
be  mined  and  treated  at  an  actual  profit  occurs,  the  grade  at 
which  ore  can  be  handled  in  preference  to  running  below 
capacity  must  be  determined.  Muck  from  development  faces 
must  be  disposed  of,  and  it  is  then  the  question  whether  rock 
which  is  abeady  broken  and  in  the  car  should  go  to  the  treat- 
ment plant  or  over  the  dump. 

While  cost  statements  furnish  valuable  information  con- 
cerning the  economy  of  the  operations,  they  should  not  be  de- 
pended upon  entirely  for  the  direction  of  the  work,  as  by  the 
time  that  monthly  statements  have  been  completed  the 
information  contained  in  them  is  of  the  nature  of  past  history. 
The  live  manager  or  superintendent  will  require  sufficient 


4  MINE  BOOKKEEPING 

daily  records  to  keep  his  hand  upon  the  pulse  of  the  organiza- 
tion at  all  times,  and  any  irregularity  which  may  develop 
wall  be  recognized  as  soon  as  it  makes  an  appearance.  To 
this  end,  daily  reports  should  be  required  from  each  depart- 
ment, giving  the  essential  information  concerning  the  work 
and  the  results  accomplished.  The  use  of  such  reports  fixes 
responsibility  between  the  superintendent  and  the  heads  of 
departments,  and  serves  in  a  gi-eat  measure  to  prevent  pro- 
crastination and  slacking  of  interest. 

Records  of  supplies  on  hand  and  on  order  must  be  kept ; 
these  are  of  particular  importance  when  the  mine  is  located 
beyond  easy  access  to  the  sources  of  supply.  Statements 
showing  the  average  consumption  of  each  essential  item  of 
material  used  will  facilitate  the  maintenance  of  an  adequate 
stock  without  loading  up  too  heavily  with  any  one  article. 
When  the  mine  is  located  at  some  far-distant  place,  where  the 
delivery  of  supplies  is  a  matter  of  many  weeks  or  even  months 
after  the  order  has  been  sent  forward,  the  maintenance  of  a  well 
balanced  stock  of  supplies  is  one  of  the  most  difficult,  and  cer- 
tainly one  of  the  most  important,  problems  which  must  be  met. 

The  object  of  this  volume  is  to  show  an  adequate  system 
of  records  and  accounts  for  smaller  mines,  as  distinguished 
from  the  elaborate  systems,  requiring  a  large  clerical  staff, 
which  may  be  necessary  when  the  operations  are  conducted 
on  a  very  large  scale.  The  system  as  outlined  can  be  main- 
tained at  a  minimum  of  office  expense,  as  the  object  in  view  at 
all  times  is  to  eliminate  unnecessary  posting  and  copying, 
and  to  get  the  accounts  into  their  final  form  with  the  fewest 
possible  intermediate  operations.  As  in  any  branch  of  engi- 
neering, the  best  results  can  only  be  obtained  by  establishing 
order  and  well-defined  methods  for  handling  the  variety  of 
detail  which  is  a  necessary  adjunct  to  any  form  of  accounting. 
Filing  and  indexing  appliances  are  in  almost  universal  use  at 
the  present  time.  Here,  as  elsewhere,  simplicity  is  desirable, 
and  standardized  methods  of  filing  should  be  used  in  all 
departments  to  avoid  confusion  and  loss  of  time. 

Classification  of  Accounts. 

In  general,  mine  expenditures  fall  into  three  classes;  these 


MINE  BOOKKEEPING  5 

are  known  as  ''Capital  Charges,"  ''Suspense  Charges"  and 
"Operating  Expenses."  "Capital  Charges"  comprise  those 
expenditures  which  represent  the  original  investment  and 
additions  and  improvements  of  a  permanent  nature.  "Sus- 
pense" or  "Deferred  Charges"  are  made  for  outlays,  the 
benefits  from  which  will  be  derived  at  some  future  time, 
usually  extending  over  a  considerable  period;  payments  of 
taxes,  insurance  premiums,  etc.,  which  cannot  properly  be 
charged  out  at  once  to  the  expenses  of  mining  and  treating  the 
ore,  are  carried  as  suspense  accounts  and  are  charged  out  into 
the  operating  expenses  thi'ough  the  period  during  which  the 
benefits  from  the  expenditure  are  realized.  "Operating 
Expenses"  include  all  charges  w^hich  are  incident  to  the  proc- 
ess of  mining  and  treating  the  ore  and  of  marketing  the 
product,  with  the  exception  of  those  items  which  have  been 
charged  into  the  capital  and  suspense  accounts. 

Capital  and  Suspense  Accounts. 

As  a  general  rule,  the  tendency  of  the  mine  operator  is  to 
charge  too  many  expenditures  into  the  capital  accounts,  in  a 
misguided  effort  to  show  low  working  costs.  New  construc- 
tions, permanent  improvements  and  additions  in  equipment 
should  be  included  under  capital  charges,  as  well  as  important 
renewals  to  the  installation,  the  cost  of  discarded  equipment 
being  written  off  as  depreciation.  Such  items  as  shafts, 
headings,  etc.,  which  are  necessary  to  maintain  the  production 
of  ore,  add  nothing  to  the  actual  value  of  the  property  but 
rather  serve  to  indicate  a  diminishing  ore  reserve.  It  may  be 
desirable,  however,  to  carry  such  expenditures  as  suspense 
accounts,  to  be  charged  off  upon  an  equitable  basis  to  the 
operating  expenses,  in  order  that  the  value  of  the  working 
costs  for  comparisons  will  not  be  affected.  By  many  com- 
panies, underground  work  such  as  main  shafts,  stations, 
exploration  crosscuts,  etc.,  are  included  in  the  capital  charges, 
being  considered  as  coming  under  the  designation  of  improve- 
ments, and  this  should  be  done  when  the  work  adds  a  tangible 
value  to  the  property.  The  more  common  practice,  however, 
is  to  charge  out  as  many  of  these  expenditures  as  possible  to 


6  MINE  BOOKKEEPING 

the  operating  expenses,  when  there  is  no  definite  distinction  at 
which  a  line  can  be  drawn  between  work  done  to  maintain  the 
output  of  ore  and  that  which  can  be  considered  as  an  improve- 
ment to  the  property. 

Amortization. 

]\Iining  ventures  differ  from  most  forms  of  enterprise  in 
that  the  supply  of  raw  material,  the  ore,  is  a  fixed  quantity 
which  cannot  be  replenished.  To  be  classed  as  a  profitable 
business,  it  is  essential  that  the  operation  of  the  mine  not  only 
show  a  reasonable  return  on  the  investment  as  interest,  but 
the  principal  must  be  returned  by  the  time  that  the  ore- 
supply  has  become  exhausted.  The  length  of  useful  life  of  a 
mine,  in  the  great  majority  of  cases,  is  of  comparatively  short 
duration,  and  a  basis  of  reimbursement  from  the  gross  in- 
come must  be  adopted,  which  will  eventually  return  the 
original  investment,  after  deducting  the  ultimate  selling  value 
of  the  property.  This  return  of  the  principal  by  a  reimburse- 
ment fund,  independent  of  dividends,  is  known  as  "amortiza- 
tion. "  In  order  to  determine  the  rate  of  amortization  to 
be  allowed,  the  probable  length  of  useful  life  of  the  mme  must 
be  defined.  If  there  is  no  knowledge  of  the  ultimate  ore- 
supply  upon  which  to  base  a  more  definite  conclusion,  a 
period  of  years  must  arbitrarily  be  decided  upon,  during  which 
the  return  payments  of  the  capital  invested  are  to  be  set 
aside  from  the  gross  earnings.  The  advance  of  mining 
operations  will  give  additional  knowledge  concerning  the 
extent  of  the  ore-bodies,  and  revisions  in  the  estimated  length 
of  life  of  the  mine  may  be  considered  advisable  and  necessary 
from  time  to  time  to  conform  to  the  variations  in  conditions. 
Amortization  charges  will  not  appear  in  the  mine  accounts, 
but  will  be  taken  care  of  in  the  records  at  the  head  office  of 
the  company. 

Depreciation. 

The  plant  and  improvements  on  the  proi)erty  are  subject 
to  a  constant  diniinutioii  in  value;  machinery  wears  out  or 
becomes  obsoh^te  and  improvements  become  useless  as  the 


MINE  BOOKKEEPING  7 

field  of  operations  changes  with  the  mining  out  of  the  ore- 
bodies.  This  expiration  of  values,  due  to  the  wearing  out  and 
obsolescence  of  equipment,  and  also  to  the  termination  of  its 
usefulness  by  the  exhaustion  of  the  ore-supply,  is  known  as 
"depreciation."  With  the  exception  of  repairs  and  minor 
replacements,  which  can  be  charged  out  at  once  to  the  operat- 
ing expenses,  the  cost  of  all  new  equipment  should  be  charged 
into  the  capital  accounts,  to  be  written  off  to  the  costs  of 
current  operations  over  the  estimated  period  of  useful  hfe 
of  each  installation.  When  equipment  is  scrapped,  if  the 
original  cost,  with  deductions  for  salvage  to  be  realized,  has 
not  been  covered  by  the  depreciation  already  allowed,  the 
difference  should  be  charged  off  at  once  to  Profit  and  Loss. 
All  charges  for  depreciation  should  appear  in  the  mine 
accounts.  ^ 

Operating  Expenses. 

Operating  expenses  fall  into  two  groups;  these  may  be 
called  '' Direct  Charges, "  and  "Indirect "  or  "Redistributable 
Charges."  "Direct  Charges"  include  all  expenditures  which 
are  made  for  some  defined  result  in  the  operations,  or  for 
some  purpose  for  which  no  equitable  basis  for  redistribution 
is  apparent.  "Redistributable  Charges"  are  those  which 
must  be  "spread"  over  the  other  accounts,  in  proportion  to 
the  benefits  conferred,  in  order  that  the  ultimate  results  from 
them  may  be  determined.  In  the  segregation  and  division 
of  the  operating  expenses,  the  greatest  inherent  difficulty  is 
usually  found  in  this  "spreading"  of  the  redistributable 
charges.  These  expenditures  must  be  subdivided  among  the 
other  accounts,  each  redistributable  account  being  considered 
separately.  It  will  be  recognized  that  some  classes  of  work 
show  no  definite  results  which  can  be  referred  to  the  accounts 
ultimately  benefitted,  and  these  could  only  be  redistributed 
by  an  arbitrary  division.  For  instance,  mine  maintenance 
accounts,  supervision,  etc.  offer  no  basis  for  an  accurate  re- 

1  Engineering  &  Mining  Journal  of  April  6,  1918;  notes  on  depreciation 
and  obsolescence  as  allowed  by  the  U.  S.  Federal  Tax  Laws,  from  a  pamphlet 
issued  by  Loomis,  Suffern  and  Fernald,  Public  Accountants,  New  York. 


8  MINE  BOOKKEEPING 

distribution  to  the  costs  of  the  different  workings  in  the  mine 
and  could  only  be  arbitrarily  divided  among  them.  The 
"spreading"  of  the  indirect  charges  is  often  the  source  of 
misleading  results,  and  efforts  in  this  direction  should  be 
confined  to  those  accounts  which  present  definite  data  for  their 
subdivision.  The  personal  element  is  certain  to  appear  in 
distributions  which  are  arbitrarily  made  and  the  resulting 
working  costs  are  rendered  unreliable  for  comparisons  with 
other  periods,  when  a  different  basis  of  subdivision  may  have 
been  used.  It  must  also  be  recognized  that  the  "spreading" 
of  these  charges  over  the  other  accounts  has  a  tendency  to 
obscure  the  differences  which  the  working  costs  are  intended 
to  expose,  by  burying  accurate  data  under  a  mass  of  figures, 
which,  at  best,  can  only  be  regarded  as  an  approximation. 
In  the  subdivision  of  accounts,  the  point  is  soon  reached  at 
which  further  refinements  only  make  for  confusion.  It 
is  to  be  recommended  that  efforts  be  directed  towards  sim- 
plicity and  clearly  defined  results,  rather  than  towards  the 
accumulation  of  a  large  amount  of  intricate  detail  which 
cannot  be  accurately  determined  without  an  unwarranted 
outlay. 


CHAPTER  TWO 


OUTLINE  OF  ACCOUNTS 


In  establishing  a  system  of  accounts,  the  details  of  the 
work  must  necessarily  be  adapted  to  the  local  conditions,  and 
the  accounts  to  be  used  can  only  be  decided  upon  after  a 
careful  study  of  the  case  in  point.  In  order  that  the  reader 
may  recognize  more  readily  the  uses  and  application  of  each 
record  described  in  the  following  pages,  a  typical  outline  of 
accounts  has  been  adopted;  it  should  be  a  comparatively 
easy  matter  to  alter  these  accounts  to  apply  to  the  particular 
case.  The  accounts  shown  are  simple  and  easily  kept,  but 
they  may  be  elaborated  upon  to  any  reasonable  extent  with- 
out affecting  the  application  of  the  methods  outlined. 


GENERAL  MINE  ACCOUNTS 
Operating  Expenses. 


Direct  Charges 

0  Dead  Work. 

01  Breaking  ground 

02  Tramming 

05  Timbering 

06  Pumping 

1  Development. 

11  Breaking  ground 

12  Tramming 

15  Timbering 

16  Pumping 

2  Stoping. 

21  Breaking  ground 

22  Tramming 

23  Shoveling 

24  Filling 

25  Timbering 


Indirect  Charges 

A.  Hoisting 

B.  Drills  and 
compressors 

C.  Tool  sharpening 


A.  Hoisting 

B.  Drills  and 
compressors 

C.  Tool  sharpening 


A.  Hoisting 

B.  Drills  and 
compressors 

C.  Tool  sharpening 

9 


P.  Power 


P.  Power 


P.  Power 


10  MINE  BOOKKEEPING 

3  Mine  General. 

31  Foremen  cand  bosses 

32  Track  &  supplies 

33  Drill  steel 

34  Maintenance  tramming  P.  Powder 

35  Maintenance  timbering 

36  Maintenance  pumping  &  draining 

37  Mine  miscellaneous 

4  Ore  Treatment. 

41  (Subaccounts  should  be  carried  to 

42  cover  each  operation  in  the  proc-  P.  Power 

43  ess  of  treatment) 
44 

etc. 

5  Marketing  Bullion. 

6  General  Expense. 

61  General  office 

62  Engineering 

63  Assaying  &  sampling 

64  Hospital 

65  Legal 

66  Taxes 

67  Insurance  P.  Power 

68  Boarding  house 

69  Policing 

610  Stable 

611  Building  maintenance 

612  Water  supply 

613  Lighting 

614  Telephones 

615  Roads 

616  Tools  account 

617  Shop  expense 

618  Surface  foremen  &  bosses 

619  General  miscellaneous 


Current  Capital  Charges. 

7  Live  Stock  &  Vehicles. 

8  Furniture  &  Fixtures. 


MINE  BOOKKEEPING 


11 


Constructions  &  Improvements. 

91  (A    subaccount    is     opened     for 

92  each  construction  or  installation) 
93 

94 
etc. 


P.  Power 


Suspense  Accounts. 

Taxes 

Insurance 

Other  General  Ledger  Accounts. 

Head  Office 

Bullion 

Cash 

Accounts  Payable 

Accounts  Receivable 

General  Supplies 

Unclaimed  Wages 

Profit  &  Loss 

Diagrams. 

The  entries  for  any  transaction  will  be  clarified  by  the  use 
of  a  diagram,  which  serves  to  visualize  the  operation.  The 
diagram  shows  the  debits  and  credits  involved  and  furnishes 
a  concise  means  of  indicating  the  completed  transaction.  The 
following  diagram  shows  the  entries  in  simple  for  the  purchase 
of  a  bill  of  supplies  from  the  Mine  &  Smelter  Supply  Co.: 


General  Supplies 

Mine  &  Smelter  Supply  Co. 

Cash 

Dr.                         Cr. 

Dr. 

Cr. 

Dr. 

Cr. 

(1)  $726.00 
(2) 

$726.00 

$726.00 

$726.00 

$726.00 

Closed 

$726.00 

the  first  entry  charges  General  Supplies  with  the  amount  of 
The  materials  purchased  and  credits  the  account  of  the  Mine 
&  Smelter  Supply  Co.     The  second  entry  indicates  the  pay- 


12  MINE  BOOKKEEPING 

ment  of  the  bill;  this  closes  out  the  account  of  the  Mine  & 
Smelter  Supply  Co.  and  Cash  is  credited  with  the  amount 
paid. 

DEFINITIONS  OF  ACCOUNTS 

Operating  Expenses. 

The  entries  to  Operating  Expenses  and  also  to  the  Current 
Capital  Accounts  are  invariably  debits,  with  the  exception 
of  a  very  few  minor  credits,  as  medical  dues  credited  to  the 
Hospital  account,  payments  received  for  assaying  done  for 
outsiders  credited  to  Assaying  &  Sampling,  etc.  These 
minor  credits  are  entered  upon  the  books  in  red  ink. 

Direct  Charges. 

In  the  outline  of  accounts  given.  Dead  Work,  Develop- 
ment and  Stoping  are  intended  to  cover  direct  charges  only. 
The  expenditures  for  Hoisting,  Drills  &  Compressors,  Tool 
Sharpening  and  Power  are  included  under  Indirect  Charges 
and  these  are  redistributed  to  the  accounts  benefitted  at  the 
end  of  the  month. 

0.  Dead  Work  includes  the  costs  of  all  mine  openings, 
as  shafts,  stations,  crosscuts,  etc.,  which  are  not  driven  in  the 
ore-body. 

1.  Development  includes  the  costs  of  all  openings,  the 
purpose  of  which  is  to  block  out  ore  and  to  make  the  ground 
accessible  for  stoping. 

2.  Stoping  charges  include  the  costs  of  breaking  ore,  of 
delivering  it  to  the  loading  chutes,  and  of  sui)porting  the 
resulting  excavations  while  the  work  is  in  progress.  Sub- 
accounts for  filled  stopes  are  shown. 

3.  Mine  General:  Under  this  heading,  those  mine 
accounts  appear  which  do  not  offer  an  adecjuate  basis  for 
redistribution  to  the  essential  accounts  benefitted,  namely, 
Dead  Work,  Development  and  Stoping. 

31.  Mine  foremen  &  bosses:  This  account  is  charged  with 
the  salaries  and  wag(\s  of  all  underground  fonunen  and  bosses ; 
also  with  any  supplies  used  by  them,  as  for  lighting,  etc. 


MINE  BOOKKEEPING  13 

32.  Track  &  supplies:  The  costs  of  all  track  material 
for  mine  use,  as  rails,  bolts  and  nuts,  splice  bars,  spikes  and 
ties  are  charged  to  this  account.  The  labor  of  laying  track 
may  be  charged  out  here  or  directly  to  the  account  benefitted. 
When  track  is  torn  up  for  the  recovery  of  materials,  the  work 
is  charged  to  this  account. 

33.  Drill  steel:  The  cost  of  all  machine  and  hand  steel 
for  underground  use  is  charged  to  this  account  when  the 
material  is  issued  from  the  warehouse;  also  cost  of  shanking 
and  preparing  new  steel  for  use. 

34.  Maintenance  tramming:  The  upkeep  of  mine  tracks 
and  of  tramming  equipment  is  charged  to  this  account. 

35.  Maintenance  timbering:  This  account  covers  the 
charges  for  repairs  and  replacements  of  mine  timbers.  Char- 
ges to  new  timbering  are  made  directly  to  the  account  bene- 
fitted whenever  possible. 

36.  Maintenance  pumping  &  draining:  This  account 
covers  the  costs  of  pumping  and  draining,  other  than  the  costs 
of  keeping  Dead  Work  and  Development  openings  un watered ; 
it  includes  costs  of  cutting  and  maintaining  ditches,  etc.  If 
ditches  are  cut  when  the  headings  are  driven,  the  costs  may 
be  charged  directly  to  the  headings. 

37.  Mine  miscellaneous:  Items  of  mine  expense  which 
cannot  logically  be  charged  elsewhere  are  thrown  into  this 
account.  The  Miscellaneous  account  should  be  used  as  little 
as  possible. 

4.  Ore  Treatment  charges  include  the  costs  pertaining 
to  the  extraction  of  the  valuable  content  from  the  ore,  after 
this  ore  has  been  mined  and  delivered  at  the  reduction  plant. 
Subaccounts  should  be  in  use  showing  each  step  in  the  process 
of  treatment. 

5.  Marketing  Bullion  charges  include  the  costs  of 
delivery  and  sale  of  the  resulting  bullion. 

6.  General  Expense  is  made  up  of  the  following  subac- 
counts :- 

61.  General  office:  This  account  is  charged  with  the  sal- 
aries of  the  administrative  and  clerical  staff,  and  includes 
the  salaries  of  time-keepers,  warehouse  clerks,  etc.     It  is  also 


14  MINE  BOOKKEEPING 

charged  with  the  costs  of  stationery  and  printing,  postage 
and  general  office  supplies. 

62.  Engineering  includes  the  charges  to  the  engineers' 
office :     draughtsmen,  surveyors,  helpers  and  supplies. 

63.  Assaying  and  sampling  includes  the  cost  of  labor, 
supplies  and  power  charged  to  this  work.  The  account  is 
credited  with  any  income  received  from  outside  sources 
for  assaying. 

64.  Hospital  expense  includes  the  cost  of  salaries,  supplies, 
etc.  Employees  are  usually  charged  a  medical  fee  and  the 
amount  collected  in  this  manner  is  credited  to  the  Hospital 
account. 

65.  Legal:  Court  expenses,  retainer  fees,  etc.  and  all 
costs  incurred  thi'ough  litigation  are  charged  to  this  account. 

66.  Taxes:  The  yearly  taxes  are  anticipated  and  are 
charged  out  in  equal  monthly  installments.  Any  differences 
between  the  estimated  and  the  actual  amounts  are  adjusted 
at  the  end  of  the  year.  Payments  for  taxes  are  handled 
through  a  ledger  suspense  account. 

67.  Insurance  premiums  are  handled  in  the  same  manner 
as  payments  for  taxes. 

68.  Boarding  house:  The  total  cost  of  operating  the  com- 
pany hotel  is  charged  to  this  account.  It  is  credited  with  the 
receipts  for  board  furnished. 

69.  Policing  expense  includes  the  wages  of  policemen  and 
watchmen;  also  the  cost  of  any  materials  issued  to  them  for 
illumination,  etc. 

610.  Stable  expense  includes  the  costs  of  labor,  feed,  main- 
tenance of  pastures,  operation  and  maintenance  of  motor 
vehicles,  etc. 

611.  Building  maintenance  is  charged  with  the  upkeep  of 
the  company  offices,  dwellings,  etc.  It  is  credited  with  the 
receipts  from  house  rents. 

612.  Water  supply  includes  the  costs  of  maintaining  the 
water  supply  for  mine,  plant  and  dwellings. 

613.  Lighting  expense  includes  the  costs  of  operation 
and  maintenance  of  all  electric  or  other  lighting  by  the 
company. 


MINE  BOOKKEEPING  15 

614.  Telephones  expense  includes  the  cost  of  operating 
and  maintaining  the  telephone  system. 

615.  Roads  expense  includes  the  costs  of  upkeep  of  roads 
and  trails. 

616.  Tools  account:  All  tools  issued  from  stock  for  general 
use  are  charged  to  this  account.  Records  of  tools  loaned 
and  returned  are  kept  at  the  warehouse  and  lost  tools  are 
charged  to  the  workmen  to  whom  they  were  issued. 

617.  Shop  expense:  Whenever  possible,  the  work  done 
in  the  shops  is  charged  out  directly  to  the  proper  accounts. 
Any  charges  which  remain,  as  the  maintenance  of  shop  ma- 
chinery, power,  etc.  are  included  under  this  account. 

618.  Surface  forernen  and  bosses:  Foremen  and  bosses 
employed  on  general  work,  so  that  their  time  cannot  readily 
be  distributed,  are  charged  to  this  account. 

619.  Genl.  miscellaneous:  Items  not  chargeable  to  other 
accounts  are  included  under  the  heading  of  General  Miscel- 
laneous expense.  In  order  to  avoid  the  danger  of  making  this 
account  the  dumping  ground  for  careless  distribution,  an 
itemized  monthly  statement  of  the  charges  included  in  it 
should  be  required. 

Indirect  Charges. 

A .  Hoisting  expense  is  charged  with  the  costs  of  operation 
and  maintenance  of  the  hoisting  equipment;  also  with  the 
wages  of  station  tenders,  top-landers,  etc.  The  account  is 
redistributed  upon  the  basis  of  the  actual  tonnage  hoisted. 

B.  Drills  &  compressors:  This  account  is  charged  with 
the  operation  and  repairs  of  mine  compressors  and  with  the 
upkeep  of  machine  drills.  Redistribution  is  made  upon  the 
basis  of  the  number  of  machine  shifts  performed  to  each  class 
of  work.  New  machine  drills  may  be  charged  out  as  a  sub- 
account under  Constructions  &  Improvements  when  they  are 
issued  from  the  warehouse,  their  value  being  written  off  as 
depreciation  upon  the  basis  of  the  estimated  length  of  life 
of  the  drill. 

C.  Tool   sharpening:     This    account  may  be  subdivided 


16  MINE  BOOKKEEPING 

according  to  the  actual  number  of  drills  sharpened  for  each 
class  of  work;  a  simpler  way  is  to  make  the  redistribution  in 
proportion  to  the  charges  for  breaking  ground  to  the  mine 
accounts  between  which  it  is  divided. 

P.  Power  expense  is  also  a  redistributable  charge,  but  it 
should  appear  as  a  separate  account  as  its  redistribution 
includes  charges  to  the  other  indirect  accounts.  This  account 
includes  all  costs  of  the  operation  and  maintenance  of  power 
plant  and  appurtenances.  It  is  charged  out  to  the  accounts 
benefitted  upon  the  basis  of  the  actual  power  consumption 
in  the  various  departments.  The  redistribution  is  arrived  at 
from  wattmeter  or  other  readings,  or  from  the  manufacturers' 
ratings  of  the  machines  in  use. 

Current  Capital  Charges. 

The  Capital  Charges  include  all  expenditures  which  are 
made  for  permanent  improvements  or  additions  to  the  prop- 
erty. The  value  of  all  such  improvements  and  additions  is 
systematically  written  off  to  Profit  and  Loss  as  depreciation, 
usually  at  the  end  of  each  year,  over  a  period  of  time  decided 
upon  as  the  probable  useful  length  of  life  of  the  installation. 

7.  Live  Stock  &  Vehicles.  This  account  covers  the 
value  of  all  live  stock,  harness,  wagons,  motor  vehicles,  etc. 

8.  Furniture  &  Fixtures.  This  account  covers  the 
value  of  all  house  and  office  furniture  and  fixtures. 

9.  Constructions  &  Improvements.  This  account 
covers  the  value  of  all  constructions,  improvements  and 
additions  in  equipment.  A  separate  subaccount  is  opened 
under  this  heading  for  each  new  construction  or  installation. 

Suspense  Accounts. 

Taxes  Suspenses.  The  taxes  for  the  year  are  anticipated 
and  are  charged  off  to  the  operating  expenses  in  equal 
monthly  installments.  Any  differences  between  the  esti- 
mated and  the  actual  amounts  are  adjusted  at  the  end  of  the 
year. 

Insurance  Suspense.  Insurance  premiums  are  paid  in 
advance,  and  the  amount  paid  out  for  this  purpose  is  charginl 


MINE  BOOKKEEPING 


17 


into  a  suspense  account.  The  total  cost  of  insurance  is  then 
charged  out  to  General  Expense  in  twelve  equal  monthly 
installments  during  the  year,  the  suspense  account  being 
closed  out  by  the  December  entry.     Example: 


Insurance  Suspense 

Cash 

General  Expense 

Dr. 

Cr. 

Dr. 

Cr. 

Dr. 

Cr. 

(1) 

$3900 

$3900 

(2)     Jan. 

$325 

$325 

(3)     Feb. 

325 

325 

(4)     Mar. 

325 

325 

(12)  Nov. 

325 

325 

(13)  Dec. 

325 

325 

1 

Closed 

1 

$3900 

$3900 

Other  General  Ledger  Accounts. 

Head  Office.  This  account  is  credited  with  all  remit- 
tances and  payments  of  bills  made  for  the  account  of  the 
mine  by  the  head  office;  it  is  charged  with  all  income  from 
the  sale  of  bullion  or  from  other  sources.  The  funds  neces- 
sary for  current  expenses  are  furnished  by  the  head  office, 
either  as  bank  deposits  to  the  credit  of  the  mine  account  or 
as  payments  of  bills.  Entries  for  these  transactions  are  made 
upon  the  mine  books  as  follows: 

Upon  receiving  advice  from  the  head  office  of  a  deposit 
at  the  bank  of  say  $10,000  and  of  payments  of  bills  for  sup- 
plies purchased  to  the  amount  of  S3, 625: 


Head  Office 

Cash 

General  Supplies 

Dr. 

Cr. 

Dr.                       Cr. 

Dr. 

Cr. 

$13,625 

$10,000 

$3,625 

Upon  making  shipment  from  the  mine  of  bullion,  valued 
by  mine  assays  at  $38,500: 


18 


MINE  BOOKKEEPING 


Head  Office 

Bullion 

Dr. 

Cr. 

Dr. 

Cr. 

$38,500 

$38,500 

Suppose  that  the  actual  liquidation  received  from  the 
sale  of  the  above  bullion  shipment  is  838,800,  or  S300  more 
than  the  estimated  value  already  entered  upon  the  books. 
Then  $300  is  charged  to  the  Head  Office  Account  and  the 
Bullion  Account  is  corrected  to  show  the  actual  value  of  the 
shipment: 


Head  Office 

Bullion 

Dr. 

Cr. 

Dr. 

Cr. 

(1) 

(2) 

$38,500 
300 

$38,500 
300 

$38,800 

$38,800 

Bullion.  This  account  shows  the  bullion  production  for 
the  year  to  date.  The  value  of  each  shipment  is  estimated 
as  already  explained,  a  correction  being  made  later,  when 
the  actual  liquidated  value  has  been  received.  The  Bullion 
Account  is  credited  to  Profit  and  Loss  to  the  end  of  each 
year. 

Cash.  The  Cash  Account  constitutes  the  record  of  all 
cash  received  and  paid  out,  and  of  the  cash  balance,  on  hand 
or  deposited  in  the  bank.  The  account  includes  money  and 
commercial  paper,  as  checks,  drafts,  etc.,  which  is  redeema- 
ble at  face  value  upon  presentation.  The  Cash  Account  is 
debited  with  money  received  and  credited  with  money  paid 
out.  The  account  may  be  separated  into  several  accounts, 
in  order  to  show  transactions  from  actual  cash-on-hand,  and 
also  transactions  with  each  bank  with  which  the  comi)any 
carries  a  deposit. 

Accounts  Payable.  This  account  represents  the  total 
of  bills  owed  by  the  company ;  the  total  of  the  account  is  the 


MINE  BOOKKEEPING  19 

total  amount  of  the  credit  sides  of  the  Individuals  &  Cos. 
Ledger  and  Invoice  Record. 

Accounts  Receivable.  This  account  represents  the 
total  of  bills  owing  to  the  company;  it  is  made  up  of  the  total 
of  the  debit  sides  of  the  Individuals  &  Cos.  Ledger  and  Invoice 
Record. 

General  Supplies.  This  account  is  charged  with  the 
materials  and  supplies  received  at  the  warehouse  and  cred- 
ited with  the  materials  and  supplies  issued;  it  should  show 
at  the  end  of  each  month  the  value  of  stock  on  hand.  The 
account  is  adjusted  after  inventory  to  show  the  actual  value 
of  stock,  the  difference  being  charged  out  to  Profit  &  Loss  or 
charged  pro-rata  to  the  various  accounts. 

Unclaimed  Wages.  Employees'  wages  not  claimed 
within  a  reasonable  length  of  time  are  returned  to  the  cash 
and  credited  to  this  account.  If  these  wages  are  paid  later, 
the  account  is  charged  with  the  amount. 

Profit  &  Loss.  At  the  end  of  each  year,  all  operating 
expenses,  losses  and  depreciation  are  charged  off  to  the 
Profit  &  Loss  Account;  the  bullion  production  and  income 
from  all  other  sources  are  credited  to  it. 


CHAPTER  THREE 

OUTLINE  OF  PRINCIPAL  RECORDS  USED 

A  brief  general  outline  of  the  system  of  records  to  be 
described  in  the  following  pages  will  assist  in  giving  a  clear 
understanding  of  the  uses  of  each  record  and  of  its  relation 
to  the  general  system.  To  prevent  confusion,  only  the  more 
essential  records  will  be  listed  in  this  summary,  as  the  uses 
of  the  others  will  be  understood  without  difficulty  if  the 
purpose  of  each  principal  record  is  made  entirely  plain.  In 
the  outlines  at  the  beginnings  of  the  following  chapters,  the 
records  which  are  essential  to  a  complete  system  are  listed 
apart  from  the  secondary  ones,  which  may  be  required  as 
auxiliaries  to  the  principal  records  or  to  furnish  additional 
information  to  aid  in  following  the  details  of  the  work. 

Essential  Records. 

General  Office  Records  of  Accounts. 

Cash  Journal 

Vouchers 

General  l)islribution 

General  Ledger 

Time-keeper's  Records. 
Time  Book 
Labor  Dislrihution 
Pay-rolls 

General  Office  Records  of  Supplies. 
Purchase  Orders 
Register  of  Supplies  Ordered 
Cost  Book 

Warehouse  Records. 

Stock  on  Hand  Lndex 
Warehouse  Requisitions 
Supplies  Distribution 

20 


MINE  BOOKKEEPING  21 

GENERAL  OFFICE  RECORDS  OF  ACCOUNTS 

Cash  Journal. 

The  Cash  Journal  takes  the  place  of  Cash  Book,  Journal 
and  Voucher  Register.  All  transactions,  both  expenditures 
and  receipts,  are  recorded  in  this  book,  in  which  columns  are 
provided  for  debiting  and  crediting  the  amount  of  each  entry 
to  the  accounts  concerned.  The  charges  and  credits  to  each 
account  are  then  added  up  at  the  end  of  the  month  and  are 
posted  as  one  entry  to  that  account  in  the  General  Ledger. 

Vouchers. 

The  Voucher  furnishes  a  statement  in  detail  concerning 
the  purpose  of  the  corresponding  transaction.  A  receipted 
Cash  Voucher  should  be  on  file  for  every  disbursement  as 
recorded  by  the  Cash  Journal;  a  Journal-entry  Voucher  is 
only  necessary  when  the  space  afforded  by  the  Cash  Journal 
is  too  limited  to  give  full  details  concerning  the  journal  entry. 

General  Distribution. 

The  Cash  Journal  only  distributes  each  transaction  to  the 
General  Ledger  accounts,  which  are  the  main  headings  in  the 
outline  of  accounts  as  given  in  Chapter  Two.  The  distri- 
bution of  current  expenditures  to  the  various  subaccounts 
is  carried  out  on  the  General  Distribution  sheet;  this  record 
furnishes  the  information  for  making  up  the  monthly  Cost 
Statements.  The  General  Distribution  record  is  only  con- 
cerned with  the  items  which  go  to  make  up  the  operating  ex- 
penses and  current  capital  charges;  no  other  entries  appear 
upon  it. 

General  Ledger. 

The  Ledger  constitutes  the  permanent  record  of  the  gen- 
eral accounts  in  their  final  form. 

TIME-KEEPER'S  RECORDS 
Time  Book. 

The  Time  Book  shows  the  hours  worked  by  each  employee 
and  charges  out  this  time  to  the  various  jobs  upon  which  he 
was  employed. 


22  MINE  BOOKKEEPING 

Labor  Distribution. 

The  daily  labor  charges  as  given  by  the  Time  Book  are 
classified  to  the  accounts  benefitted  upon  the  Labor  Distri- 
bution sheets,  which  segregate  the  costs  of  every  class  of 
labor  to  each  job  and  operating  account.  Labor  costs  for 
any  account  can  be  analysed  at  once  by  referring  to  the 
corresponding  Labor  Distribution  sheet. 
Pay-rolls. 

The  Pay-rolls  are  posted  daily  from  the  Time  Book; 
at  the  end  of  the  period,  they  show  the  gross  earnings,  deduc- 
tions and  net  balance  due  to  each  employee. 

GENERAL  OFFICE  RECORDS  OF  SUPPLIES 

Purchase  Orders. 

Orders  for  warehouse  stock  to  be  purchased  are  made  out 
upon  this  form. 

Register  of  Supplies  Ordered. 

This  record  assembles  all  information  concerning  supplies 
and  materials  purchased  and  furnishes  the  cost  of  each  item 
as  delivered  at  the  warehouse. 

Cost  Book. 

The  cost  price  per  unit  of  each  article  of  warehouse  stock 
is  given  in  the  Cost  Book;  it  also  contains  the  Purchase  Order 
numbers  applying  to  each  article,  thus  serving  as  an  index 
to  the  Register  of  Supplies  Ordered. 

WAREHOUSE  RECORDS 

Stock  on  Hand  Index. 

The  daily  receipts  and  issues  of  supplies  are  entered  upon 
this  index,  which  furnishes  a  perpetual  inventory  of  the  ware- 
house stock  on  hand. 

Warehouse  Requisitions. 

The  Warehouse  Requisition  constitutes  the  warehouse 
clerk's  receipt  for  supplies  issued.  A  separate  slip  is  used  in 
making  a  reciuisition  for  supplies  to  each  subaccount.  The 
rcciuisitions  are  then  segregated  and  filed  under  the  headings 
of  the  subaccounts. 


MINE  BOOKKEEPING  23 

Supplies  Distribution. 

The  Supplies  Distribution  sheets  classify  the  supplies 
used  for  each  job  and  operating  account;  they  are  posted  from 
the  Warehouse  Requisitions.  Material  costs  for  any  account 
can  be  analysed  at  once  by  referring  to  the  corresponding 
Supplies  Distribution  sheet.  The  items  making  up  any 
charge  upon  the  sheet  are  immediately  accessible  from  the 
corresponding  Warehouse  Requisitions,  which  have  been 
segregated  and  filed  to  each  subaccount. 


CHAPTER  FOUR 

GENERAL  OFFICE  RECORDS 

Essential  Records :  Subsidiary  Records : 

Cash  Journal  Petty  Cash 

Vouchers  Individuals  &  Companies  Ledger 

General  Distribution  Invoice  Record 

General  Ledger  Side  Ledger  of  Capital  Charges 

Cash  Journal  (Figs,  la  &  b). 

The  present  tendency  is  to  get  away  from  posting  and 
copying  accounts  through  Cash  Book,  Journal  and  Voucher 
Register  by  the  use  of  a  single  book,  known  as  the  Cash  Journal. 
By  the  use  of  this  record,  the  charges  to  the  various  accounts 
are  segregated  and  balanced  before  they  are  posted  to  the 
General  Ledger.  Instead  of  the  laborious  repetition  required 
in  posting  through  the  Journal,  only  the  total  amounts  of  the 
accounts  which  are  much  in  use  are  transferred  to  the  Genera) 
Ledger  at  the  end  of  the  month. 

The  Cash  Journal  should  contain  a  sufficient  number  of 
columns,  so  that  ordinary  transactions  can  be  debited  and 
credited  at  once  to  the  proper  accounts;  this  avoids  the 
necessity  of  posting  each  entry  to  the  General  Ledger.  In 
the  application  of  the  classification  of  accounts  already  out- 
lined, columns  should  be  provided  for  the  following: 

DEBITS 
Individuals  &  Companies 
Cash 
Bank 

Store  Expense  \  These  accounts  are  needed  onlj^  in  case  that  the  com- 
Mehciiandise      J       pany  operates  a  general  mercantile  store. 
Genkhal  Supplies 

Vakious  (Each  item  must  be  entered  to  the  General  Ledger) 
Constructions  &  Improvements 

Power  1  These  are  closed  out  at  the  end  of  the  month  to  the 

Indirect  ('harges  J       other  accounts. 

24 


MINE  BOOKKEEPING  25 

Marketing  Bullion 
Ore  Treatment 
Mine  General 
Stoping 
Developmeistt 
Dead  Work 

CREDITS 

Individuals  &  Companies 

Various  (Each  item  must  be  entered  to  the  General  Ledger) 

General  Supplies 

Store  (This  account  is  used  only  when  the  company  operates  a  store). 

Cash 

Bank 

The  above  headings  will  be  found  to  handle  nearly  all  entries. 
At  the  end  of  the  month  the  columns  are  added  and  the 
Cash  Journal  is  balanced.  The  total  of  each  account  is  then 
posted  to  the  General  Ledger.  The  ideal  Cash  Journal  would 
have  a  column  for  every  ledger  account,  thus  avoiding  the 
posting  of  any  individual  entry  to  the  General  Ledger,  but 
this  would  necessitate  a  volume  of  unwieldy  dimensions. 
In  order  to  keep  the  record  to  as  small  size  as  possible,  ac- 
counts only  occasionally  used  are  entered  through  the  "Vari- 
ous "  columns  and  each  entry  to  these  accounts  must  be  posted 
separately  to  the  General  Ledger.  Bills  owed  by,  and  owing 
to,  the  company  are  posted  to  the  subsidiary  ledger  known  as 
''Individuals  and  Companies." 

Transactions  of  all  kinds,  which  have  a  place  in  the  ac- 
counts, are  entered  upon  the  Cash  Journal.  Any  case  which 
may  arise  can  be  handled  by  this  record,  if  the  form  in  use  has 
been  adapted  to  the  requirements.  The  Cash  Journal 
can  easily  be  introduced  into  any  bookkeeping  system,  to 
replace  Cash  Book,  Journal  and  Voucher  Register.  By  carry- 
ing it  for  a  time  with  the  records  which  it  is  intended  to  super- 
cede, upon  forms  ruled  by  hand  or  printed  upon  black-process 
paper,  the  most  effective  arrangement  of  headings  will  be 
determined.  A  few  blank  columns  should  be  provided  for 
new  accounts  which  may  be  needed.  Figs.  1  a  &h  show  a  form 
of  Cash  Journal  with  examples  of  entries.  Some  of  the  exam- 
ples are  given  below  in  diagram: 


26 


MINE  BOOKKEEPING 


-1 

<; 
z 
u. 

D 
O 


X 
< 


onoj 


D-a 


s    s. 


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O 


MINE  BOOKKEEPING 


27 


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S 


28  MINE  BOOKKEEPING 

Entry:  To  the  Denver  Fire  Clay  Co.,  for  assaying  supplies, 


S187 


Debit 

Credit 

General  Supplies                   S187 

Bank  Account 

S187 

Entry:  Deposited  by  head  office  for 

current  expenses. 

SI  5,000 

Debit 

Credit 

Bank  Account                      SI 5,000 

Head  Office 

815,000 

Entry:  To  George  Rogers,  for  stove 

wood, 

S22 

Debit 

Credit 

General  Expense                      S22 

Store 

Bank  Account 

'sio 

12 

Of  the  total  amount,  $22,  $10  was  drawn  in  goods  from  the  company 
store  and  $12  was  paid  by  check. 


Entry:  To  John  Stanley,  Supt.,  for  traveling  expenses. 

?19 

Debit                                      1                                      Credit 

General  Expense,                     $19 

Individuals  &  Co.'s 
John  Stanley 

$19 

The  account  of  John  Stanley,  Supt.,  is  credited  with  S19  in  the  Individuals 
&  Companies  ledger. 


Entry:  Store  issues  to  current 

accounts, 

SI  79 

Debit 

Credit 

Ore  Treatment 
General  Expense, 

$  10 
169 

Store  Account, 

$179 

etc. 

It  will  be  noted  that  the  Cash  Journal  carries  out  the  distri- 
butions to  the  Ledger  Accounts  only;  the  further  distribution 
to  the  various  subheadings  undc^r  each  Ledger  Account  is 
made  uj)on  the  General  Distribution  sheet,  which  will  be 
considered  in  this  chapter. 


MINE  BOOKKEEPING 


29 


Petty  Cash  Book  (Fig.  2). 

To  avoid  entering  cash  payments  and  receipts  for  trifling 
amounts  into  the  Cash  Journal,  a  Petty  Cash  Book,  into  which 
these  entries  are  made,  should  be  kept.  At  the  end  of  the 
month  the  total  balance  from  the  Petty  Cash  Book  is  posted 
to  the  Cash  Journal  as  one  entry.  A  simple  receipt  form 
should  be  used  for  petty  cash  payments;  these  receipts  are 
filed  with  the  Cash  Voucher  which  accompanies  the  entry  to 
the  Cash  Journal. 

Petty  Cash  Book. 


Date 

Entry 

Distrib'n 

Dr. 

Cr. 

« 

Forward 

$19.40 

July  12 

Telegrams 

61 

2.20 

Eggs  for  boarding  house 

68 

.... 

1.75 

Reward  for  finding  strayed  stock 

610 

.... 

2.00 

July  14 

Postage  stamps  sold 

61 

2.25 

FiQ.  2.— Petty  Cash  Book. 

Vouchers. 

(1)  Cash  Vouchers.  Every  cash  disbursement  as  entered 
upon  the  Cash  Journal  must  be  accompanied  by  a  corresponding 
Cash  Voucher,  which  serves  as  a  receipt  for  the  amount  paid 
out,  as  well  as  a  detailed  record  of  the  transaction  involved; 
upon  it  should  be  given  a  complete  statement  of  the  purpose 
for  which  the  expenditure  was  made.  A  convenient  develop- 
ment of  the  Cash  Voucher  is  the  Voucher  Check  (Figs.  3  a  & 
6),  which  combines  the  Cash  Voucher  with  the  bank  check 
by  which  payment  is  made.  This  form  of  voucher  requires 
no  receipt  other  than  its  indorsement  when  cashed;  the  can- 
celled check  as  returned  from  the  bank  constitutes  the  record 
of  the  transaction.  A  stiff  paper  envelope  (Fig.  4),  about 
43^2  X  9  inches,  open  at  the  end  and  with  a  printed  form  for 
entering  the  voucher  number  and  the  date,  will  be  found 
convenient  for  filing  the  voucher  and  the  invoices  or  other 
documents  which  accompany  it.  Distribution  to  the  various 
accounts  benefitted  by  the  expenditure  may  be  shown  upon 
this  envelope  or  upon  the  voucher  itself.     The  usual  practice 


30 


MINE  BOOKKEEPING 


Check  Noa^J2_Cash  Voucher  No.-^»J'_..Bearcat, 

N .  M  ..June  I.192_-_  _ 

E 
o 

FIRST  NATIONAL  BANK 

U 

C 

Pay  to  the             _,               t^.        ^,         ^ 

order  of          ._  J?€?^f  r_  ■'^^^^   ^'"2/    C^o* 

^18700. 

Qnejiundred  eighty   seven    oo/jco 

Dollars 

Cashier 

Superintendent 

1^      d 

ii 

x;   o       .- 

V 

^   c       £ 

j: 

nt  0 

full 
d  wi 

a 

e^— : 

B 

4)    n  •►•  i! 

(0 

w   a  c  M 

u 

I.             u 

o 

■a  x:   c  M 

•a 

q 

C    •►•    Ss  ♦» 

—   I.  n  C3 

U    &    V 

^ 

"  -c  «  E 

CO 

£     U     u     u 

u 

*^    3    M-i 

.a 

>.    O   T)    S 

a 

CQ     >     U     U 

2 

Fro.  3a. — Voucher  Check  (face). 


II 

MARY  MINING  COMPANY  |j                         ^^''^  ^'°'''^"'  ^' 
Bearcat,  New  Mexico             !  To    Denver  Fire  Clay   Co. 

D..5SZ__. 

— ■ 

1                       Denver,  Colo, 

A^X.. 

Purpose  of  Payment 

Ma7j  17 

^ 

Invoice  for  assaying    supplies                 "     85 

70  !| 

"     29 

"          "            "                 "                      I   101 

30  \ 

!i 

II 

—                                                      —    .. 

1 1^-— J 

_TotaI jl 


/67 


00 


Indorsement  should  be  made 
on  reverse  side. 


No  other  receipt 
is  required. 


Deposit  in  any  bank  for 
collection. 


FiQ.  36. — Vouchor  Check  (reverse). 


MINE  BOOKKEEPING 


31 


Cash  Voucher  lio._J87_ Check  NcJ^i^ j 

Amount       $.J87M. 

MARY  MINING  CO. 

Receipt  Voucher  of 

Peiwer_Fir£_Clay_Co^ 


_D ate_of_i)ayrn ent_ _ _June_  7jJ.92_ — 


Fig.  4. — Envelope  for  filing  cash  voucher  and  invoices. 


32  MINE  BOOKKEEPING 

is  to  require  all  bills  and  invoices  to  the  company  to  be  made 
out  in  duplicate.  After  an  account  has  been  paid,  the  can- 
celled check  and  the  original  papers  are  filed  into  a  voucher 
envelope  and  forwarded  to  the  head  office;  the  duplicate  bills 
are  also  filed  into  an  envelope  and  are  kept  for  record  at  the 
local  office. 

(2)  J ournal-e7itry  Vouchers  (Fig.  5).  All  journal  entries 
are  made  directly  to  the  Cash  Journal;  unless  the  transaction 
is  so  simple  that  it  will  be  readily  understood  by  the  entry  as 
made  upon  the  Cash  Journal,  it  should  be  accompanied  by  a 
Journal-entry  Voucher,  which  states  the  purpose  of  the  entry 
in  full  detail.  The  explanation  of  the  entry  as  given  upon 
the  Journal-entry  Voucher  should  be  such  that  the  transac- 
tion will  be  clearly  understood  by  anyone  who  may  have 
occasion  to  refer  to  it.  The  Journal-entry  Vouchers  should 
be  filed  into  loose-leaf  binders  for  reference. 

General  Distribution  (Figs.  6  a  to  </). 

The  purpose  of  the  General  Distribution  sheet  is  to  classify 
to  the  proper  subaccounts  all  charges  which  make  up  the  total 
current  monthly  expenditures  for  general  operations  as  they 
appear  upon  the  Cash  Journal.  It  will  be  noted  that  this 
record  is  only  concerned  with  the  current  charges  to  both 
the  operating  and  capital  accounts;  all  other  entries  are  made 
to  the  Cash  Journal  alone.  Thus  all  entries  to  Operating  Ex- 
penses and  to  the  Current  Capital  Charges,  in  the  outline  of 
accounts  given  in  Chapter  Two,  will  appear  upon  both 
the  General  Distribution  and  the  Cash  Journal,  wliile  entries 
to  the  other  ledger  accounts  will  appear  upon  the  Cash 
Journal  only. 

The  General  Distribution  form  is  made  loose-leaf;  to 
avoid  a  sheet  of  unwieldy  length,  it  may  be  made  up  of 
several  short  sheets,  securely  fastened  together  in  the  form 
of  a  book,  with  the  bottom  leaf  sufficiently  longer  than  the 
others  that  the  statement  of  the  entries  and  the  total  amounts, 
which  appears  in  the  columns  at  the  left  hand  side  of  the 
page,  will  not  be  covered  when  the  form  is  closed.  Every 
subaccount  must  be  given  a  column  upon  the  General  Distribu- 
tion, and  the  number  as  well  as  the  name  of  each  subaccount 


MINE  BOOKKEEPING 


33 


Journal  Entry  No.  78 

Date:  Ju 

ne  30,  192- 

To  Mercantile  Store                   Credit 
Issues  during  June  to  the  following 
accounts : 

ORE  TREATMENT 

42  20  cotton  grain  sacks  X.10.35 
44  3-2  gal.  galvanized  pails  XSl.OO 

GENERAL  EXPENSE 

62  2  bars  soap  XSO.  10             $0.20 
5  yds.  cheese  cloth  X  SO.  16   0 .  80 

63  300  paper  bags                       1 .  50 

2  towels  X  10.75               1 .  50 
2>^  doz.  tin  pans  X  ?0. 10  3  00 

68     General  Merchandise 

611      2  paint  brushes  X  $1.00 

7 
3 

1 

6 

160 

2 

00 
00 

00 

00 
00 
00 

179 

00 

Entered  Folio  58 


Correct  Approved 

Fig.  5. — Journal-entry  Voucher. 


34 


MINE  BOOKKEEPING 


1               Month  of  June  192-                                         GENERAL  DISTRIBUTION 

o 
■go- 

> 

•i 

Entry 

p 
s 

i 

< 

Dead  Worlt 

Development 

tetoping 

-Ho 

M     3 

S  2 

02 

I. 

H 

05 

i. 

06 

■3 
0 

H 

f! 

J" 

15 

i. 
i6 

'« 

H 

1^ 

y 

B 

22 

is 

23 

bo 

24 

II 
'=25 

H 

Labor 

JS3 

31 

Payrolls  /or  June 

10905 

S76 

331 

50 

(25/ 

9-iS 

350 

50 

[54; 

15U 

i59 

132 

S70 

145 

265( 

etc 

Svpplics 

ail 

19 

Stovcwuod /or  board- 

22 

J81 

31 

Store  issues 

179 

J82 

31 

Warehouse  issues 

7909 

622 

21 

no 

rss 

ew 

2S 

i4^ 

SJ5 

7i2 

SO 

9 

i4 

205 

i007 

CJ,3. 

31 

Petty  Cash 

37 

etc 

' J 

1 

I- 

Sundries 

J77 

SI 

Traveling  expenses 

IS 

31 

Taxes 

SCO 

etc 

Fig.  6a. — General  Distribution. 


MINE  BOOKKEEPING 


35 


1 

Mi 

ne  Generi 

>1                            1 

Indirect   Charges         1 

a      <c 

32^ 

f  1 

33 

If 

si 

35 

36 

ii 

"3 

1 

4 

.    s 

—       a. 

a    ^ 
B 

I 

O 

o 

p 

J,10 

16 

7 

1,2 

76 

162 

7i3 

239 

U7 

lU 

550 

320 

12 

no 

76 

70 

62 

330 

722 

120 

115 

356 

117 

— 1 

1 





Fig.  66. — General  Distribution. 


36 


MINE  BOOKKEEPING 


GENERAL  DISTRIBUTION 

Milline                                      1 

Cvanidirm           1 

1,1 

S,      to 

42 

1-^ 

JO 

45 

1.1 

-JO      > 

45 

46 

a 

a 

i 
47 

"3 

J.  ° 
ill 

if 

4i2 

475 

1 
55 

4i4 

57 

Z79 

5ir 

257 

200 

54 

2i44 

1? 

52 

56 

94 

7 

5 

iO 

2h 

28 

124^ 

57 

5 

Z556 

-•S7 

C76 

77J 

1 — 

- 

Fig.  6c. — General  Distribution. 


MINE  BOOKKEEPING 


37 


Cvanidine 

1   H 

V 

[arketine  Bullion      1 

li 
1,15 

^  1 

e.  a 

5  - 

a  ^ 

ilS 

6 

i 
1,19 

ill 

52 

S  g 

s  s 

52 

1^ 

<  5 

53 

"3 

I 

9 

7 

325 

31 

622 

7765 

25 

25 

kU 

115 

t 

Zill 

S56r 

-1 

Fig.  6d. — General  Distribution. 


38 


MINE  BOOKKEEPING 


GENERAL  DISTRIBUTION                                       | 

General        1 

Expense                                   1 

D    PR 

a  o 
61 

P      V 

62 

65 

3. 

o 

ca 
6^ 

•3 
65 

m 

66 

• 
67 

fl 

us 

a 

2 

69 

1 
670 

S  s 
611 

•II 
Ci2 

-J   " 

613 

lOkO 

175 

257 

s^ 

73 

55 

73 

56 

29 

10 

29 

22 

I 

6 

100 

2 

9 

i 

60 

/ 

29 

S 

IT 

2  J 

, 

J ■ 

soo 

Fia.  6c. — General  Distribution. 


MINE  BOOKKEEPING 


39 


1 

General  Expense 

■3 

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FiQ.  6/. — General  Distribution. 


40 


MINE  BOOKKEEPING 


GENERAL  DISTRIBUTION 

Contructions  &  ImproTCCDents 

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Fig.  6ff. — General  Distribution. 


MINE  BOOKKEEPING  41 

should  appear  at  the  head  of  the  column  to  facilitate  finding 
it  readily.  The  costs  of  labor,  suppHes  and  sundries  should 
be  kept  separately.  "Sundries"  include  all  charges  which 
are  for  neither  labor  nor  supphes,  as  payments  for  taxes,  fees, 
miscellaneous  credits  for  medical  dues,  house  rents,  etc.,  etc. 
In  order  to  separate  the  costs  of  labor,  supplies  and  sundries 
to  each  account,  the  charges  should  be  segregated  upon  the 
General  Distribution  sheet;  that  is,  all  labor  entries,  for 
example,  should  be  made  together  upon  one  part  of  the  sheet, 
etc.  Practice  will  soon  determine  the  approximate  number 
of  spaces  required  under  each  caption.  A  few  blank  columns 
should  be  provided  for  new  accounts  which  may  be  needed. 
Credit  items  are  entered  in  red  ink.  The  total  charges  to 
each  account,  as  taken  from  the  General  Distribution  sheet, 
are  used  to  make  up  the  monthly  Cost  Statements,  the  forms 
for  which  are  considered  in  Chapter  Eight. 

Redistributable  Accounts. 

After  all  entries  for  the  month  have  been  made  upon  the 
General  Distribution,  the  Indirect  Charges  are  redistributed. 
The  charges  to  labor,  supplies  and  sundries  to  each  indirect 
charge  are  apportioned  to  the  accounts  benefited  and  the 
corresponding  amounts  under  Indirect  Charges  are  closed 
out  in  red  ink. 

Constructions  &  Improvements. 

In  keeping  costs  of  installations  and  construction  work, 
the  expenditures  for  the  various  operations  which  make  up 
the  completed  job  should  be  determined.  Excavations  and 
grading,  foundations,  superstructures,  wiring,  painting,  etc. 
should  be  kept  as  separate  items;  these  details  furnish 
information  to  be  applied  to  similar  work  in  the  future  and 
some  of  them  are  necessary  for  insurance  purposes.  Each 
item  of  construction  which  is  to  be  determined  is  given  a 
column  under  ''Constructions  &  Improvements"  upon  the 
General  Distribution;  these  columns  are  in  blank  to  be  filled 
in  as  needed.  The  job  is  indicated  in  the  narrow  blank  space 
above  the  spaces  for  the  names  of  the  subaccounts.  The 
monthly  charges  to  each  construction  job  are  entered  into 


42  MINE  BOOKKEEPING 

the  Side  Ledger  of  Capital  Charges  to  make  up  the  cost  record 
of  the  completed  job.  The  total  charge  to  the  General 
Ledger  account,  ''Constructions  &  Improvements,"  from  the 
General  Distribution,  appears  as  one  entry  for  the  month  in 
the  General  Ledger. 

General  Ledger  (Fig.  7). 

The  General  Ledger  is  the  final  record  of  the  major  ac- 
counts; all  entries  to  it  are  posted  from  the  Cash  Journal. 
The  General  Ledger  may  be  permanently  bound  or  loose-leaf, 
and  is  of  the  standard  form  which  can  be  purchased  almost 
anywhere.  An  account  is  opened  in  the  General  Ledger 
for  each  one  of  the  major  headings  as  given  in  the  general 
outline  of  accounts,  a  page  in  the  ledger  being  given  to  each 
account.  To  make  the  subject  clear,  these  General  Ledger 
accounts  are  repeated: 

GENERAL  LEDGER  ACCOUNTS: 

Dead  Work  Taxes  Suspense 

Development  Insurance  Suspense 

Stoping  Head  Office 

Mine  General  Bullion 

Ore  Treatment  Cash 

Marketing  Bullion  (Bank) 

General  Expense  Accounts  Payable 

Indirect  Charges  Accounts  Receh'able 

Power  General  Supplies 

Live  Stock  &  Vehicles  Unclaimed  Wages 

Furniture  &  Fixtures  Profit  &  Loss 
Constructions  &  Improvements 

At  the  end  of  each  month,  the  columns  in  the  Cash  Journal 
are  balanced;  these  totals  are  then  posted  to  the  correspond- 
ing accounts  in  the  General  Ledger.  Only  one  monthly 
entry  to  each  active  account  is  required,  with  exception  of  the 
entries  made  under  the  "Various"  columns;  each  item  of  these 
must  be  posted  separately  to  the  General  Ledger.  When  all 
entries  for  the  month  have  been  made  from  the  Cash  Journal, 
the  General  Ledger  must  balance;  i.  c.,  the  total  debits  of  the 
ledger  must  be  equalled  by  the  total  credits.     The  balanced 


MINE  BOOKKEEPING 


43 


Account:  ORE  TREATMENT 


Debit 


Credit 


Jan.  31. 
Feb.  28. 
Mar.  31 
Apr.  30. 
May  31 . 
June  30. 
July  31 . 
Aug.  31. 
Sept.  30 
Oct.  31. 
Nov.  30 
Dec.  31. 


Cash  Journal 
do 
do 
do 
do 
do 
do 
do 
do 
do 
do 
do 


Folio 

4 

8 
11 
14 
17 
20 
24 
27 
30 
33 
36 
40 


6220 . 50 
6739.20 
4976.41 
5884.17 
6150.49 
6023.12 
6336.10 
5784.00 
5919.07 
6540 . 30 
6441.17 
5832.23 


72846   76 


Dec.  31     Profit  &  Loss 


Folio 
40     72846.76 


72846.76 


Fig.  7. — General  Ledger, 


44  MINE  BOOKKEEPING 

statement  of  the  General  Ledger  Accounts,  showing  that  the 
total  debits  and  total  credits  are  equal,  is  called  the  "Trial 
Balance." 

Individuals  &  Companies  Ledger. 

Miscellaneous  open  accounts  with  company  employees 
and  outsiders  are  usually  kept  in  a  separate  ledger  record 
known  as  "Individuals  and  Companies."  This  record  is 
really  a  part  of  the  General  Ledger  and  all  the  accounts  may 
be  carried  in  the  General  Ledger  if  desired.  Accounts  with 
concerns  who  bill  out  their  goods  by  invoice  should  not  be 
entered  upon  the  Individuals  and  Companies  Ledger;  these 
are  more  easily  handled  by  the  use  of  an  additional  ledger 
form,  known  as  the  ''Invoice  Record."  The  total  debits  and 
credits  from  the  Individuals  and  Companies  Ledger  and  the 
Invoice  Record  make  up  the  General  Ledger  entries  to  Ac- 
counts Payable  and  Accounts  Receivable. 

Invoice  Record. 

The  Invoice  is  a  statement  covering  the  purchase  price  of 
goods  shipped  to  the  company;  the  shipper  mails  an  invoice 
for  each  consignment  of  goods  as  shipment  is  made;  at  the 
end  of  the  month,  he  renders  a  statement  covering  the  total 
amount  due  to  date.  The  Invoice  Record  is  a  simple  ledger 
form,  into  which  the  invoice  amounts  are  posted  directly, 
after  the  invoice  has  been  approved  for  payment,  thus  avoid- 
ing the  necessity  of  making  entry  for  each  invoice  through 
the  Cash  Journal.  "WTien  settlement  is  made  after  the  end 
of  the  month,  the  account  in  the  Invoice  Record  is  closed 
out  and  entry  covering  the  payment  is  made  in  the  Cash 
Journal. 

Side  Ledger  of  Capital  Charges    (Fig.  8). 

The  object  of  this  record  is  to  furnish  the  details  of  all 
charges  to  the  current  capital  accounts  and  to  provide  moans 
by  which  these  accounts  may  be  systematically  charged  off  to 
depreciation.  Each  job  is  carried  upon  a  separate  sheet  in 
this  record;  w^hen  the  work  is  completed,  the  record  of  it  is 
filed  alphabetically  into  the  back  of  the  book  for  fut\n-e  refer- 


MINE  BOOKKEEPING 


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46  MINE  BOOKKEEPING 

pnce.  All  pieces  of  machinery,  etc.,  which  may  be  used  later 
at  some  other  place  than  that  where  they  were  first  installed, 
as  hoists,  motors,  pumps,  etc.,  are  separated  out  from  the 
installation  for  which  they  are  intended  and  the  cost  of  each 
piece  of  machinery,  etc.,  as  delivered  at  the  property  is  kept 
as  a  separate  record.  In  this  way,  no  confusion  will  arise 
later  in  making  charges  for  additions  and  improvements,  or 
for  depreciation. 

The  monthly  charges  to  the  various  capital  accounts  are 
posted  to  this  ledger  from  the  General  Distribution;  the 
details  of  the  charges  for  labor  and  supplies  are  given  upon 
the  Labor  and  Supplies  Distribution  sheets,  so  that  a  com- 
plete analysis  of  all  capital  charges  is  immediately  available 
by  referring  back  to  these  records.  Labor  and  Supplies 
Distribution  records  are  considered  in  Chapters  Five  and 
Seven.  The  charges  to  depreciation  are  segregated  from  the 
Side  Ledger  of  Capital  Charges,  and  the  total  amount  of 
depreciation  allowed  for  any  period  is  charged  off  to  Profit 
and  Loss  in  the  General  Ledger. 


CHAPTER  FIVE 

TIME-KEEPER'S  RECORDS 

Essential  Records:  Subsidiary  Records: 

Office  Time  Book  Foremen's  Time  Books 

Labor  Distribution  Time  Tickets 

Pay-rolls  Pay  Envelopes  or 

Voucher  Pay-checks 

Office  Time  Book  (Fig.  9)/ 

The  name  of  each  workman  is  given  a  page  in  this  form  of 
time  book;  the  record  should  be  loose-leaf  and  so  constructed 
that  the  sheets  can  readily  be  transferred  in  it  from  one  place 
to  another  as  desired.^  In  this  way,  each  class  of  labor  can 
be  segregated  in  the  time  book  to  facilitate  the  daily  distri- 
butions; that  is,  the  carpenters,  the  blacksmiths,  the  labor- 
ers, etc.  can  be  kept  together,  and  each  class  of  labor  indexed 
in  the  book  by  a  tabbed  sheet  for  ready  reference.  The  time 
of  the  workman  is  usually  noted  in  hours  and  his  rate  given 
as  a  rate-per-hour.  The  jobs  upon  w^hich  he  worked  are 
indicated  by  number.  At  the  end  of  the  period,  the  total 
time  worked  and  the  total  amount  due  each  workman  are 
extended  in  the  time  book  as  a  check  against  the  pay-rolls. 
The  usual  practice  is  to  count  time  worked  in  half  hours;  if 
the  workman  comes  on  shift  a  few  minutes  late,  a  half  hour 
is  deducted  from  his  time  for  the  day.  In  all  examples  of 
time-keeping  records  showTi,  payments  twice  monthly  have 
been  assumed.  Time  records  should  be  printed  for  the  1st 
to  15th  of  the  month  and  others  for  the  16th  to  31st,  to 
avoid  unnecessary  clerical  work;  or  the  dates  for  both  periods 
may  be  printed  in  the  title  spaces  and  a  line  drawn  through 
the  figures  not  used. 

Workmen's  time  is  usually  kept  at  the  time-keeper's 
office  by  time-clocks  or  by  a  check  system.  Where  the  check 
system  is  used,  a  metal  identification  check,  stamped  with 
the  workman's  number,  is  issued  to  each  man  from  the  time 

iRef.   "Engineering    Office    Systems  and  Methods"  by  John  P.   Davies; 
McGraw-Hill  Book  Co. 

47 


48 


MINE  BOOKKEEPING 


office.  Before  the  beginning  of  the  shift,  the  check  is  handed 
in  at  the  office,  where  here  it  is  hung  in  its  place  upon  a 
board;  at  the  end  of  the  shift,  the  check  is  returned  to  the 
workman  as  he  passes  the  window.  These  checks  also  serve 
as  a  means  of  identification  at  the  store,  the  paymaster's 
window,  etc. 


Employee's 
Name  Chas.  White                                                      Number        428 

0<'cupation     Acct. 

1    2 

3 

4 

5:  6 

1 

7 

8 

9 

10  11 

1 
12  13 

14- 15 

Total 
hours   Rate 

Amount 

Blacksmith        C 

8 

4 

6 

8 

2 

1 

32 

4 

34 

2 

4 

— 

— 

— 

!     42 

2 

] 

1 

1 

j 

1 

— 

1 
1 

1 

t 

— 

— 

— 

— 

Fig.  9.— Office  Time  Book. 


Foremen's  Time  Books  (Fig.  10). 

A  pocket-sized  time  book  may  be  supplied  to  each  foreman, 
in  which  the  time  of  his  men  is  kept.  A  page  in  this  book  is 
assigned  to  the  name  of  each  workman  and  sufficient  spaces 
are  provided  for  the  total  number  of  days  during  the  period. 
The  daily  hours  worked  by  each  man  are  noted  in  the  book, 
his  time  being  divided  up  to  show  the  number  of  hours  put 
in  on  each  class  of  work  or  job.  The  book  is  delivered  at 
the  end  of  the  shift  to  the  time-keeper  for  posting  the  time 
and  distributions  to  the  Office  Time  Book. 


MINE  BOOKKEEPING 


49 


Time  Tickets  (Fig.  11). 

Instead  of  the  Foremen's  Time  Book,  an  Individual  Time 
Ticket  form  may  be  used  for  keeping  account  of  the  work 


Name — Arturo  Castro                                                 No.     237 
Occupation— Machine    runner    Month        June,    192— 

Date 

Hours 

Work  performed 

Acct. 

1 

8 

Drilling,    1200S     Heading 

11 

\ 

/ 

~j 

[^ 

" 

■ 

" 

Fig.   10.- — Foremen's  Time  Book. 


Name— Fred    Fiske                                                     No.  129 
Occupation  —  Timberman                                      Date  —  June    1,    192— 

Hours 

Work  performed 

Acct. 

7V2 

Retimbering    on   900   level 

35 

1 -^ 



1 — J 

-^ ^ 

^ . --s_— .^^^ .^ ^_ _, _ ^ 

In 

7.10                                          Mining 

Out 

Department 

Foreman 

Fig.   11.— Time  Ticket. 

performed.     A  blank  form,  stamped  with  the  date,  is  issued 
from  the  time-keeper's  window  to  each  workman  as  he  goes 

4 


50  MINE  BOOKKEEPING 

on  shift;  the  form  is  filled  in  and  signed  or  punched  by  the 
foreman  during  the  shift;  it  is  then  returned  to  the  time- 
keeper at  the  end  of  the  day.  ]\Iany  workmen,  especially 
those  employed  in  the  higher  classes  of  labor,  will  be  able 
to  make  out  their  own  tickets  after  they  have  been  shown 
what  is  required,  as  each  ticket  must  be  approved  by  the 
foreman  before  it  is  returned.  Credit  for  time  worked  will 
depend  upon  the  return  of  the  ticket  properly  made  out,  so 
that  little  difficulty  in  that  direction  will  be  experienced. 
Time  tickets  are  often  used  in  the  shops,  where  a  workman 
may  be  employed  upon  a  number  of  jobs  during  the  day  and 
the  workman  himself  can  best  account  for  the  time  put  in  on 
each  job,  pocket  time  books  being  used  for  mine  labor  and  for 
miscellaneous  labor  employed  upon  surface. 

Labor  Distribution  (Fig.  12). 

The  first  object  of  this  record  is  to  apportion  the  labor 
roll  among  the  various  accounts,  for  entry  upon  the  General 
Distribution  at  the  end  of  the  month.  It  also  affords  a 
statement  of  the  costs  of  each  class  of  labor  which  make  up 
the  daily  expenditures  to  each  account.  A  separate  sheet, 
or  a  part  of  a  sheet  as  required,  is  kept  by  the  time-keeper 
for  each  active  account,  and  the  total  charge  to  each  class 
of  labor  is  posted  to  it  daily  from  the  Office  Time  Book. 
The  totals  of  the  Labor  Distribution  for  the  period  must 
check  with  the  corresponding  pay-rolls.  At  the  end  of  the 
period,  the  sheets  should  be  filed  under  the  headings  of  the 
accounts  rather  than  by  months,  so  that  the  itemized  labor 
cost  for  performing  any  completed  operation  will  be  readily 
accessible.  The  Labor  Distribution  furnishes  the  essential 
information  for  the  analysis  of  costs  as  shown  by  cost  state- 
ments, and  a  variation  in  the  cost  of  labor  for  any  class  of 
work  can  be  located  immediately. 

Force  Account  Pay-rolls   (Fig.  13). 

The  time  worked  by  each  employee  is  posted  daily  to  the 
pay-rolls  from  the  Office  Time  Book.  Fig.  13  shows  a  form 
of  pay-roll  for  workmen  who  are  employed  by  the  company. 
It  often  occurs  that  a  workman  will  be  emj)loyed  at  several 


MINE  BOOKKEEPING 


51 


Mine 
Account-r  General 

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MINE  BOOKKEEPING  53 

occupations  and  rates  during  the  period  and  the  form  of  pay- 
roll should  provide  for  this  case,  without  having  to  enter  the 
same  name  more  than  once  upon  it.  At  the  end  of  the  period, 
the  hours  are  totaled  and  the  gross  amount  due  is  calculated; 
these  figures  are  checked  with  the  totals  as  they  appear  upon 
the  Office  Time  Book.  The  charges  for  mercantile  store  ac- 
count, warehouse  supplies,  hospital  fees,  etc.  are  deducted  from 
the  gross  earnings  and  the  net  balance  is  extended  upon  the 
pay-roll  for  settlement. 

Contractors"  Pay-rolls  (Figs.  14  o  &  6). 

While  contractors  are  often  paid  the  total  net  amount  due 
for  their  work,  from  which  they  pay  the  wages  of  their  men, 
the  practice  of  keeping  the  time  of  contractors'  men  and  of 
paying  them  from  the  office  is  to  be  recommended.  In  this 
way,  the  net  earnings  of  the  contractor  are  definitely  known 
to  the  management  and  the  contract  prices  can  be  fixed  intel- 
ligently. This  practice  will  also  prevent  the  contractors  from 
paying  disproportionately  high  wages,  in  an  effort  to  secure 
the  best  workmen,  a  common  source  of  demoralization  when 
both  contractors'  and  day's  pay  men  are  employed.  Upon 
the  form  shown  for  Contractors'  Payroll  (Figs.  14  a  &  6)  the 
total  amount  due  the  contractor  is  calculated  in  the  spaces  at 
the  top  of  the  sheet.  The  hours  worked  by  the  contractor's 
men  are  entered  below  and  their  gross  earnings  are  extended 
as  a  deduction  against  the  contractor,  whose  name  appears 
at  the  bottom  of  the  sheet.  The  columns  for  other  deductions 
are  the  same  as  those  upon  the  Force  Account  Pay-roll  form. 

Pay  Envelopes. 

Where  wages  are  paid  in  cash,  the  net  balances  from  the 
pay-rolls  should  be  placed  into  envelopes  for  payment,  to 
prevent  mistakes  in  handhng.  The  pay  envelope  should 
show  upon  it  a  clear  statement  of  the  number  of  hours  worked, 
with  rates  and  deductions  for  the  information  of  the  workman. 

Voucher  Pay-checks  (Figs.  15  a  cfc  6). 

When  the  mine  is  so  situated  that  payment  for  wages 
can  be  made  by  check,   this  practice  is  usually  adopted. 


54 


MINE  BOOKKEEPING 


San  Antonio  Mining  Co.                           Contractors'    Pay-roll 

Coutroc 
No 

Location 

Class  of  Work 

Advance 
Feet 

Units 

Rate 

U56 

Block  79 

Stvjnng 

79  cars 

5U 

,. 

196     " 

75, 

•  ■ 

1S7      •• 

1 

— 

1 

" 

Raise     795 

Development 

29 

v 

-i 

1 

No 
E 

Name 

Occupation 

1 

2 

3 

4 

5 

5 

7 

8 

9 

10 

11 

12 

13 

14 

15 

1 

R.  Grant 

Driller 

S 

s 

S 

5 

4 

S 

S 

5 

S 

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s 

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6 

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s 

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8 

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s 

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9 

10 

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12 

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16 

17 

18 

19 

20 

A.B,  Price 

Contractor 

s 

10 

S 

6 

5 

S 

9 

S 

1 

- 

7 

5 

S 

s 

S 

=! 

= 

FiQ.  14a. — Contractors'  Pay-roll. 


MINE  BOOKKEEPING 


55 


Period    March      1-15,192-                                                  Contractor  ^,5.  Price 

Total  Amt 

Hold 

Pay 

Dist'n  No 

Remarks 

S9 

50 

30 

50 

2 

H7 

— 

U7 

— 

2 

137 

— 

137 

— 

2 

no 

— 

10 

— 

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1 

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to    5'X  5'  at    -j-75' 

1,39 

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— 

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50 

\ ■      1 

Time 

Rate 

Total 
Amt 

Store 

W  a  re- 
house 

Hospi- 
tal 

Hotel 

Other  DeduitiOQS  ] 

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Dje 

Kemarka 

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13 

i 

3 

50 

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15 

10 

1,5 

15 

55 

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11 

i 

3 

— 

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159 

hO 

51 

10 

t- 

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— 

^3 

.  A..n.  Price 

Sj rj^frl   h,i   t:nr.r-  , 

Fig.  146. — Contractors'  Pay-roll. 


56 


MINE  BOOKKEEPING 


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MINE  BOOKKEEPING 


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58  MINE  BOOKKEEPING 

The  daily  time  worked  is  posted  to  these  checks  from  the 
Office  Time  Book,  instead  of  to  the  pay-rolls;  the  workman 
then  has  a  complete  statement  of  his  time  worked  and  the 
company's  record  is  the  Office  Time  Book,  which  is  all  that 
is  necessary.  When  this  form  of  check  is  used,  the  pay-roll 
form  does  not  show  the  daily  time,  but  has  columns  for  gross 
earnings  as  taken  from  the  voucher  check,  together  with  the 
deductions  and  balances  columns  as  on  the  form  of  pay-roll 
used  for  cash  settlements.  After  the  voucher  pay-checks 
have  been  cashed,  they  are  cancelled  and  returned  by  the 
bank  to  the  company's  office  and  are  either  placed  on  ffie 
with  the  corresponding  pay-rolls,  or  forwarded  to  the  head 
office. 


CHAPTER  SIX 

GENERAL  OFFICE  RECORDS  OF  SUPPLIES 

Essential  Records:  Subsidiary  Records: 

Purchase  Orders  Local  Purchases 

Register  of  Supplies  Ordered  Supplies  on  Hand  &  on  Order 
Cost  Book 

Purchase  Orders   (Fig.  16). 

Orders  for  new  warehouse  stock  should  be  given  on 
special  numbered  forms,  made  out  in  triplicate.  The  original 
is  sent  forward  to  the  purchasee,  one  copy  is  kept  at  the 
general  office,  and  one  copy  is  sent  to  the  warehouse  clerk. 
The  office  copy  is  filed  with  the  other  unfilled  purchase  orders; 
the  Acknowledgement  of  Order  stub,^  as  detached  and  filled 
in  by  the  purchasee,  is  attached  to  the  corresponding  Purchase 
Order  when  received.  When  the  warehouse  clerk  advises 
the  general  office  that  the  shipment  has  been  received  and 
accepted,  the  amount  of  the  invoice  is  credited  to  the  pur- 
chasee in  the  Invoice  Record;  the  purchase  order  is  then 
taken  from  the  ''Unfilled  Orders"  file  and  placed  on  per- 
manent record  in  its  numerical  order  in  the  ''Filled  Orders" 
file. 

The  rule  should  be  enforced  that  supplies  must  always  be 
ordered  upon  the  standard  order  form;  the  practice  of  placing 
verbal  orders  is  to  be  avoided.  The  writer  well  remembers  an 
unhappy  period  in  his  early  experience,  when  his  verbal  order 
for  2000  running  feet  of  mine  rails  resulted  in  the  arrival  at 
the  mine  of  2000  rails,  each  20  feet  long!  Specifications  for 
supplies  should  be  made  as  explicit  as  possible,  so  that  no 
question  may  arise  as  to  the  brand  or  quality  of  material 
required.  A  form  upon  which  materials  may  be  asked  for 
by  heads  of  departments  should  be  in  use,  and  all  requests 

iRef.     "The    Efficient    Purchase    and  Utilization  of  Mine  Supplies"  by 
Stronck  and  Billyard;  John  Wiley  and  Sons. 

59 


60 


MINE  BOOKKEEPING 


Purchase  Order  No.  563  Mary  Mixing  Co., 

Bearcat,  N.  M.,  August  15,  192- 
Ordered  from  Harron,  Rickard  &  McCone,  225  So.  San  Pedro  St.,  Los  Angeles, 
Cal. 
Gentlemen:  Please  ship  by  freight  to  Bearcat,  New  Mexico,  the  following 
materials: 


Quantity 


Articles 


6  Doz. 


Round  point,  D  handle.  Red  Edge  shovels  No.  3 


Terms. — 2%  ten  days 

Note:  Our  Purchase  Order  Number  must  appear  on  your  invoice;  otherwise, 
invoice  will  be  returned  for  correction.  Invoice  in  duplicate  and  bill- 
of-lading  with  weights  and  freight  rates  must  be  sent  promptly  on  ship- 
ment of  goods. 

Mary  Mining  Co. 

per 

Purchasing  Agent. 


Acknowledgment  oj  Order  Mary  Mining  Co. 

Bearcat,  N.  M.,  Aug.  15,  192- 
Purchase  Order  No.  563 
Please  fill  in  this  slip  and  return  immediately : 

Shipment  date 192 

From I'urciiasoe 


Fig.   IC. — Purchase  Order. 


MINE  BOOKKEEPING 


61 


for    new  stock  should  be  required  in  writing.     More  care 
will  be  taken  in  the  ordering  of  supplies  if  this  rule  is  observed. 

Local    Purchases. 

While  materials  and  supplies  will  be  purchased  whenever 
possible  in  quantity  from  jobbers  or  manufacturers,  in  order 
to  obtain  the  lowest  market  prices,  it  often  happens  that 
purchases  must  be  made  locally  to  meet  an  emergency. 
A  Local  Purchase  form  should  be  used  for  this  purpose;  all 
such  purchase  orders  should  be  made  out  in  duplicate,  the 
copy  being  placed  on  file  at  the  general  office.  Local  mer- 
chants should  be  notified  that  goods  can  only  be  charged  to 
the  company's  account  when  the  order  is  given  upon  the 
Local  Purchase  form,  properly  made  out  and  signed  by  an 
authorized  person. 

Supplies  on  Hand  and  on  Order  (Fig.  17). 

The  object  of  this  record  is  to  show  the  quantities  of  the 


OIL 
Heavy  Black 

^ 

Previous  year,  used                  ^^^^^  ^^^^^  ^^^ 
per  month,      77 
•|go_                                                                                 Unit  —  gallon 

Date 

On  hand 
1st  of 
month 

Used 
during 
month 

Received 

Order 

No. 

On 
Order 

Remarks 

1/i 

287 

72 

Inventory 

2/1 

215 

69 

2/5 

187 

300 

3/1 

U6 

76 

3/16 

300 

187 

0 

370 

, 

^.^_ 

__, ^ 

____ 

Fig.   17. — Supplies  on  Hand  and  on  Order  Index. 

more  essential  supplies  in  stock  at  the  warehouse  and  on 
order.  When  the  mine  is  located  within  easy  reach  of  the 
sources  of  supply,  so  that  materials  can  be  obtained  within  a 
short  time  when  needed,  this  record  may  not  be  considered 


62  MINE  BOOKKEEPING 

necessary,  as  the  control  of  stock  on  hand  may  be  intrusted 
to  the  warehouse  department.  However,  when  the  amval 
of  suppHes  is  a  question  of  several  weeks  or  months  after  the 
order  has  been  sent  out,  a  close  supervision  by  the  manage- 
ment of  the  stock  of  essential  supplies  on  hand  and  on  order 
becomes  a  matter  of  primary  importance,  as  the  exhaustion 
of  the  stock  of  any  item  may  be  the  cause  of  serious  in- 
convenience and  loss.  A  card  index  is  perhaps  the  most 
convenient  form  for  this  record,  a  separate  card  being  used 
for  each  kind  of  material  or  article.  The  consumption  of 
each  item  for  the  previous  month,  the  quantities  received 
during  the  month  and  the  stock  on  hand  are  posted  from  a 
report  submitted  at  the  end  of  the  month  by  the  warehouse 
clerk.  When  a  Purchase  Order  for  supplies  is  made  out, 
the  date,  order  number  and  quantity  of  each  article  ordered 
are  posted  upon  the  Supplies  on  Hand  and  on  Order  index. 
Only  the  principal  articles  of  warehouse  stock  are  entered 
upon  this  record;  minor  articles  are  reported  by  the  warehouse 
clerk  when  his  stock  card  for  any  item  shows  that  the  supply 
on  hand  has  become  less  than  the  minimum  allowed.  In  the 
example  given  in  Fig.  17,  the  inventory  taken  at  the  first  of  the 
year  showed  a  stock  of  287  gallons  black  oil;  during  January, 
72  gallons  were  issued,  leaving  215  gallons  on  hand  Feb.  1st. 
On  Feb.  5th,  300  gallons  were  ordered  by  Purchase  Order 
No.  187,  etc. 

Register  of  Supplies  Ordered  (Fig.  18). 

When  the  Purchase  Order  is  made  out,  each  item  is  listed 
upon  the  Register  of  Supplies  Ordered;  the  subsequent 
details  concerning  the  shipment  are  entered  as  they  are  re- 
ceived, to  furnish  a  complete  record  of  the  order  as  filled  and 
to  determine  the  cost  of  each  item  as  delivered  at  the  ware- 
house. The  average  of  the  cost  per  unit  of  the  new  material 
with  that  already  in  stock  is  entered  to  the  Cost  Book,  to- 
gether with  the  purchase  order  number;  in  this  way,  the 
Cost  Book  serves  as  an  index  to  the  Register  of  Sup])lies 
Ordered,  as  the  numbers  of  all  purchase  orders  upon  which  any 
article  appears  are  listed  under  that  article  in  the  Cost  Book. 


MINE  BOOKKEEPING 


63 


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MINE  BOOKKEEPING 


65 


Fig.  19  shows  a  form  of  Register  for  handling  supply  orders  in 
a  foreign  country,  where  shipment  is  made  by  steamer.  The 
invoices  and  bills-of-lading  for  each  shipment  received  are 
filed  under  the  name  of  the  steamer  and  the  date  of  arrival 
in  port.  These  papers  may  be  filed  conveniently  in  a  heavy 
envelope,  upon  which  the  essential  information  concerning  the 
shipment  is  noted. 


Article 

Unit 

Cost  per  unit 

Dynamite 
Gelatin  40  % 

lb. 

0.246     0.24'    :0.24'     0.26^ 

103 

137         156 

174 

198               1             1 

1 

i 

Dynamite,             lb. 
Gelatin  50%     | 

1 

198 

1             ^             i 

1       ^       1       !      , 

1 

j 

! 

i 

i 

i               1 

i              ; 

1 

i 

i 

i             1 

'       1 

1             1 

1 

j 

:      ! 

' 

1 
1 

j 
i 

1             i             1 

1                          {                           i 

1             1             1             1 

Fig.  20.— Cost  Book. 


Cost  Book  (Fig.  20). 

The  cost  of  each  item  of  material  as  taken  from  the  Register 
of  Supplies  Ordered  is  averaged  with  the  cost  of  the  stock 

5 


66  MINE  BOOKKEEPING 

already  on  hand,  and  the  average  cost  per  unit  for  the  entire 
lot  is  entered  to  the  Cost  Book,  to  be  used  in  charging  out 
the  material  as  issued  from  the  warehouse.     For  example : 

1200  lb.  wire  nails  costing  $86.40  is  received  at  the  warehouse,  and  920 
lb.,  costing  80.068  per  pound,  is  already  on  hand.  Then  the  average 
unit  cost  for  the  entire  stock  of  2120  lb.  wire  nails  is 

86.40  +  (920  X  0.068)       . _   ._.  ,  f      fi.    i  . 
9T9fS ^^  ^   •         P      poui^tl  for  the  lot. 

This  amount  is  entered  upon  the  Cost  Book  as  the  unit  cost  price  of  all 
wire  nails  on  hand. 

When  the  Purchase  Order  is  made  out,  its  number  is  entered 
in  the  Cost  Book  under  the  name  of  each  article  included  in 
the  order;  the  unit  cost  of  the  stock  on  hand  after  the  ship- 
ment has  been  received  is  filled  in  as  soon  as  the  charges  upon 
the  shipment  are  complete.  The  Cost  Book  is  an  index  to 
the  Register  of  Supplies  Ordered,  showing  the  purchase  order 
numbers  of  all  previous  orders  of  any  article.  In  the  exam- 
ples given  in  Fig.  20,  former  warehouse  prices  for  40  percent 
Gelatin  dynamite  were  24.6  and  24.7  cents  per  pound,  the 
present  stock  being  issued  at  26.2  cents.  Purchase  Order 
No.  198  includes  an  order  for  40  percent  Gelatin  which  has 
not  yet  been  received. 


CHAPTER  SEVEN 


WAREHOUSE  RECORDS 


Essential  Records : 

Stock  on  Hand  Index 
Warehouse  Requisitions 
Supplies   Distribution 


Subsidiary  Records: 

Way-bills 

Requisitions  for  Bills-of-Material 

Materials  Returned 

Inventories 


Way-bills  (Fig.  21). 

Where  the  mine  is  located  at  a  distance  from  the  railroad, 
a  representative  must  be  arranged  for  at  the  railroad  station 


o 

o 

Thei 
del 

Virginia  M.  &  M.  Co. 

'ollowing  freight  has  been 
ivered  to 

Way-bill  No.  2748 
Date  May  26,  192- 

Forwarding  Agt. 

No. 

Description 

Contents 

Gross  wt. 

Deliver  at 

6 
5 

1 
12 

Kegs 
Bbls. 
Bbl. 
Cases 

Nails 

Oil 

Oil  (leaking) 
Dynamite 

652 

1820 

340 

846 

Mine  warehouse 
Mine  warehouse 
Mine  warehouse 
Magazine 

3658 

Received 

Delivered 

Freighter 

Warehouse  Clerk 

Fig.  21.— Way-bill. 

to  receive  freight  and  to  forward  it  to  the  mine.  If  ore  ship- 
ments are  made,  he  arranges  for  cars  and  attends  to  the 
loading  and  shipping  of  the  ore  to  the  smelter.  At  small 
stations,  the  railroad  agent  is  usually   employed  to  look  after 

67 


68  MINE  BOOKKEEPING 

the  company's  shipping.  This  representative,  or  forwarding 
agent  as  he  is  called,  advises  the  general  office  by  mail  or 
telephone  concerning  the  contents  of  each  shipment  of 
supplies  as  received  at  the  station.  He  supervises  the  loading 
of  freight  for  transportation  to  the  mine  and  furnishes  each 
freighter  with  a  way-bill  for  the  contents  of  his  load.  The 
way-bill  states  the  number  of  pieces,  as  barrels,  boxes, 
sacks,  etc.  which  each  freighter  has  received,  together  with 
the  contents,  gross  weight  and  destination  of  each  item. 
The  way-bills  are  numbered  and  are  made  out  in  triplicate; 
the  original  is  given  to  the  freighter,  one  copy  is  mailed  to 
the  mine  office,  and  the  other  copy  is  held  by  the  agent. 
All  three  copies  are  signed  by  the  freighter  upon  receiving 
his  load.  When  the  freight  is  delivered  at  the  warehouse, 
the  clerk  checks  the  way  bill  with  the  load  as  received  and 
files  it.  The  freighter  is  issued  an  order  upon  the  cashier  for 
the  amount  due,  if  the  hauling  is  done  by  contract.  The 
warehouse  clerk  should  be  provided  with  forms  for  notifying 
the  general  office  of  all  supplies  received. 

Stock  on  Hand  Index  (Fig.  22). 

The  object  of  this  record  is  to  show  at  all  times  the  stock 
of  supplies  and  materials  on  hand  at  the  warehouse  for  which 
it  is  kept.  A  card  index  is  usually  used  for  this  purpose;  a 
separate  card  is  kept  for  each  size  and  variety  of  every  kind 
of  material  or  article  in  stock.  Warehouse  issues  are  posted 
directly  to  the  Stock  Cards  from  the  Warehouse  Requisitions. 
With  items  of  stock  which  are  constantly  being  issued  in  small 
quantities,  as  nails,  waste,  etc.,  the  necessity  of  making  many 
entries  upon  the  stock  cards  can  be  avoided  by  charging  out 
such  articles  upon  the  cards  to  a  reserve  stock  in  suflicient 
quantity  to  last  for  several  days  at  the  normal  rate  of  con- 
sumption. New  stock  is  entered  upon  the  cards  when 
received  at  the  warehouse.  On  the  example  of  Stock  Card 
shown  in  Fig.  22,  the  symbol  +  is  used  to  denote  now  stock 
received  and  —  to  denote  stock  issued ;  the  warehouse  inven- 
tory taken  on  Jan  1st  showed  107  lb.  4"  wire  nails  in  stock; 
on  Jan.  2nd.  8  lb.  was  issued,  leaving  159  lb.  on  hand;  on 


MINE  BOOKKEEPING 


69 


the  3rd,  300  lb.  of  new  stock  was  received,  making  a  total 
stock  on  hand  of  459  lb.,  etc.  The  unit  cost  is  entered  to 
the  card  from  the  Cost  Book  in  pencil,  so  that  the  amount 
can  be  changed  with  each  new  shipment  received.  When  the 
stock  on  hand  falls  below  the  minimum  allowed,  the  clerk 
should  notify  the  general  office.  Orders  for  warehouse  stock 
should  be  made  out  or  checked  by  some  one  who  is  familiar 
with  the  current  needs,  so  that  materials  no  longer  used  will 
be  recognized  and  those  for  which  the  rate  of  consumption 
has  changed  may  be  ordered  in  quantities  to  meet  present 
conditions. 


Nails 
Wire 

,4" 

...             o       1                            "                                            Location  in         p  ■•  q 
Minimum  Stock                       4  Wire   Nail S              Warehouse            ' 

^°°^^''                              Unk-Lb.             Unit    Cost   $O.Q20              .„. 
Inv.                                                                                                                  ^^^~ 

m 

167 

8 

1/2 

159 

+ 

300 

ifs 

i59 

6 

l/S 

1,53 



1 _ 

Fig.  22. — Stock  on  Hand  Index. 

The  warehouse  clerk  should  be  required  to  inventory 
parts  of  his  stock  from  time  to  time,  to  see  that  the  warehouse 
system  is  running  smoothly  and  that  his  cards  agree  with  the 
actual  stock  on  hand.  Only  small  discrepancies  should  occur 
and  these  are  corrected  upon  the  cards  as  they  appear,  the 
general  office  being  notified  regarding  shortages  so  that  they 
may  be  charged  out  at  the  end  of  the  month  to  the  current 
operations.  These  charges  for  shortages  in  the  warehouse 
stock  may  be  distributed  to  the  various  accounts  in  the  pro- 


70 


MINE  BOOKKEEPING 


portion  of  the  monthly  distribution  of  the  supplies  issued. 

Stock  Books  (Fig.  23). 

At  points  where  materials  are  kept  on  hand  but  no  clerk 
is  employed,  as  at  small  outside  prospects,  etc.,  a  card  index 
will  not  be  needed  for  keeping  account  of  the  supplies.  The 
record  will  usually  be  kept  by  persons  of  little  or  no  clerical 
ability,  and  a  strong  book,  ruled  off  to  suit  the  requirements, 
will  be  found  more  satisfactory.  Fig.  23  shows  a  form  of 
Stock  Book  of  this  kind.  The  book  is  kept  in  a  similar 
manner  to  the  stock  cards,  a  full  page  or  a  part  of  a  page  be- 
ing given  to  each  item.     Only  important  supplies  should  be 


■  -   -■    ■ 

Article 

'a 
ID 

CO 

a 

192- 

•d 
> 

'3 
0 

Qi 

T3 

U 

73 

e 

CO 

X 
a 
0 

Issued  for 
what  purpose 

Blasting  Caps,  5X 

each 

2/4 

800 

800 

2/j 

100 

700 

To  Simpson,  contractor 

2/c 

10 

G9C 

Development 

i 

2/s 

25 

665 

>> 

\ 

1 

1 

(_^ . 1 



- 



Fig.  23.— Stock  Book. 

carried  in  stock  at  such  places,  small  items  being  charged 
out  to  the  work  at  once  whenever  possible.  The  reports  at 
the  end  of  the  month  from  these  places  should  include  an 
inventory  of  the  actual  stock  on  hand,  so  that  the  issues  and 
receipts  can  be  checked  by  the  difference  of  the  stock  from 
month  to  month.  As  a  rule,  such  records  are  kept  in  a  more 
or  less  haphazard  manner;  they  are  usually  subject  to  many 
errors  and  these  must  be  hunted  down  at  the  office. 
Warehouse  Requisitions  (Fig.  24). 

The  issuing  of  materials  and  supplies  from  the  general 
storehouse  to  the  numerous  ramifications  of  the  work  is 
one  of  the  most  potent  sources  of  loss  in  the  direction  of  mining 
operations.  Workmen,  as  a  class,  are  notoriously  wasteful 
of  company  stores,  and  it  is  only  by  keeping  a  vigilant  watch 


MINE  BOOKKEEPING 


71 


over  the  delivery  of  supplies  that  extravagance  and  waste, 
as  well  as  dishonesty,  can  be  prevented.  The  simple 
knowledge  that  a  close  check  is  being  kept  upon  the  materials 
issued  will  do  much  to  promote  economical  methods.  Sup- 
phes  should  be  issued  from  the  warehouse  only  upon  the  pre- 
sentation of  an  order,  made  out  and  signed  by  a  foreman  or 
some  other  authorized  person.  However,  care  in  the  issuing 
of    supplies    does    not    imply    needless    formality    or    waste 


i 

9 
o 

o 

ft 

Date  April  9,  192- 
Warehouse  Clerk:  Please  deliver  the  following: 

Article 

\  Quantity 

Amt. 

Intended  for 
what  purpose 

Group 
No. 

%"  galv.  pipe 
Vi"  elbows 
Vi  tee 

40  ft.  , 
3 
1 

Dwelling  #34 
Dwelling  #34 
Dwelling  #34 

17 

17 
17 

Note:  Use  for  supplies  t 

o  one  subaccount  only. 

Account  No.  612 

Foreman 

Fig.  24. — Warehouse  Requisition. 


of  workmen's  time;  the  material  called  for  should  be  dis- 
patched from  the  warehouse  with  as  little  delay  as  possible 
when  the  requisition  is  delivered.  These  Warehouse  Requi- 
sitions constitute  the  clerk's  receipts  for  supplies  issued;  they 
should  show  a  clear  statement  of  the  use  to  be  made  of  the 
materials  ordered.  By  using  separate  requisitions  for  mate- 
rials to  each  subaccount,  they  can  be  segregated  for  convenient 
reference.  At  the  end  of  the  month,  they  should  be  filed 
together  in  a  binder,  tab  indexed  to  show  the  requisitions  to 
each  subaccount. 


72  MINE  BOOKKEEPING 

Foremen  and  workmen  should  be  encouraged  to  practice 
rigid  economy  in  the  use  of  suppUes;  they  should  be  made  to 
feel  that  the  consumption  of  warehouse  stock  is  under  the 
critical  eye  of  the  management,  and  that  judgement  and 
care  in  the  use  of  supplies  will  be  recognized  and  rewarded.  If 
left  to  itself,  a  requisition  system  will  invariably  degenerate 
into  a  mere  formality.  The  foreman  is  usually  occupied  with 
numerous  duties  and  unless  he  makes  a  special  effort  to  find 
out  the  purpose  for  which  supplies  are  intended  and  sees 
that  they  are  used  for  that  purpose  the  workmen  soon  learn 
that  to  obtain  all  the  material  wanted  is  only  a  matter  of 
asking  for  the  requisition. 

Requisitions  for  Bills-of-Material. 

Bills-of-]Material  or  Job  Requisitions  should  be  employed 
whenever  they  can  be  used.  "With  this  method,  the  quantities 
of  materials  needed  for  any  job  are  determined  as  exactly 
as  possible,  usually  by  the  engineering  department,  and  a 
bill-of -material  for  the  job  is  sent  to  the  warehouse.  The 
materials  called  for  upon  this  statement  are  then  subject  to 
delivery  to  any  responsible  person,  upon  his  giving  a  receipt. 
Spoiled  material  must  be  returned  to  the  warehouse  to  be 
replaced,  and  material  in  excess  of  the  amount  stated  upon  the 
bill-of-material  will  not  be  issued  without  an  explanation 
from  the  foreman  and  authorization  from  the  office  for  the 
issue  of  the  additional  material  required.  No  loss  of  time 
should  be  incurred  by  the  application  of  this  rule,  as  the  fore- 
man should  be  required  to  keep  account  of  the  condition  of 
his  allowance  of  materials  and  to  give  notice  that  an 
additional  supply  will  be  required  before  the  deficiency 
occurs. 

Materials  Returned. 

Materials  are  sometimes  issued  and  not  used,  or  they  maj" 
be  used  for  a  time  and  then  returned  in  good  condition 
to  the  warehouse.  A  Materials  Returned  slip,  preferably 
on  colored  paper,  should  be  used  to  give  credit  to  the  proper 
accounts  for  supplies  and  materials  returned  to  the  warehouse. 


MINE  BOOKKEEPING  73 

Credits  entries  for  these  items  are  made  upon  the  SuppHes 
Distribution  and  upon  the  General  Distribution  in  red  ink. 

Supplies  Distribution  (Fig.  25). 

The  object  of  this  record  is  to  make  the  final  distribution 
of  the  daily  issues  of  materials  and  supplies  from  the  ware- 
house to  the  accounts  benefitted.  It  also  furnishes  a  perma- 
nent record  of  the  materials  used  on  each  job  or  operation. 
The  classification  of  supplies  to  be  used  with  this  record  will 
vary  with  conditions;  the  following  classification  is  given 
in  the  example  shown  in  Fig.  25: 


Group  No. 

Group 

1 

Bolts,  nuts,  washers,  etc. 

2 

Brick,  cement,  etc. 

3 

Locomotive,  car  and  truck  parts 

4 

Carbide  and  candles 

5 

Chemicals 

6 

Drill  parts 

7 

Drill  steel 

8 

Explosives 

9 

Electrical  supplies 

10 

Fuel 

11 

Iron  &  steel 

12 

Lumber  and  mine  timber 

13 

Miscellaneous 

14 

Nails,  screws,  etc. 

15 

Oils,  grease,  etc. 

16 

Packing,  waste,  etc. 

17 

Pipe  &  fittings 

18 

Tools 

19 

Track  &  supplies 

A  separate  Supplies  Distribution  sheet  is  carried  for  each 
active  account ;  these  sheets  are  posted  daily  from  the  Ware- 
house Requisitions.  From  the  Supplies  Distribution,  the 
total  warehouse  charge  for  the  month  to  each  account  is 
posted  to  the  General  Distribution  sheet,  which  is  carried  at 
the  general  office.  After  the  records  have  been  closed  at  the 
end  of  the  month,  the  Supplies  Distribution  sheets  should 
be  filed  under  the  headings  of  the  accounts,  rather  than  by 
months,  so  that  the  costs  of  supplies  and  materials  used  on 
any  job  can  be  found  without  loss  of  time. 


74 


MINE  BOOKKEEPING 


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MINE  BOOKKEEPING  75 

Inventories. — An  inventory  of  all  warehouse  stock  should 
be  taken  at  regular  intervals,  usually  twice  yearly.  Losses 
from  handling,  leakage,  etc.  are  unavoidable,  and  to  prevent 
any  considerable  difference  between  the  book  cost  and  the 
actual  inventory  value  of  stock  on  hand,  a  small  percentage 
above  cost  may  be  allowed  in  charging  out  warehouse  supplies; 
this  should  not  exceed  five  percent  and  will  usually  be  less. 
The  percentage  to  be  allowed  may  be  changed  from  time  to 
time,  in  order  to  make  the  inventory  value  of  the  warehouse 
stock  check  out  as  closely  as  possible  at  the  end  of  the  period 
with  the  book  cost.  This  method  of  an  adjustable  ''selling" 
price  has  the  disadvantage  that  the  amount  of  actual  short- 
age cannot  easily  be  determined.  By  charging  out  the  ware- 
house issues  at  cost,  or  at  a  fixed  percentage  above  cost,  a 
definite  check  on  the  warehouse  issues  can  be  obtained.  Any 
difference  at  the  end  of  the  period  between  the  inventory 
value  and  the  book  cost  should  be  charged  off  to  Profit  and 
Loss,  or  it  may  be  charged  out  at  once  or  during  the  next 
period  in  the  proportion  of  the  material  charges  to  the  various 
accounts.  If  a  "selling"  percentage  is  added,  it  should  be 
changed  after  each  inventory  to  maintain  the  balance  as 
closely  as  possible.  The  principal  items  of  supplies,  as  ex- 
plosives, carbide,  etc.,  should  be  inventoried  at  the  end  of 
each  month  and  any  shortages  corrected  by  charging  them 
out  to  the  current  accounts  for  the  month. 


CHAPTER  EIGHT 

Monthly  Statements. 

The  final  analysis  of  expenditures  and  income  is  given 
by  the  Monthly  Statements,  which  are  compiled  from  the 
general  office  records  after  the  books  have  been  balanced 
at  the  end  of  the  month.  These  statements  constitute  the 
financial  report  to  the  head  office,  covering  the  operations 
during  the  month ;  they  should  afford  a  clear  basis  for  compari- 
son of  the  work  done  and  the  results  accomplished,  by  which 
a  definite  conclusion  can  be  reached  concerning  the  efficiency 
and  economy  of  the  operations.  The  following  statements 
will  be  considered  as  comprising  a  specimen  monthly  report 
to  the  head  office;  these  will  be  supplemented  in  practice  by 
such  additional  information  as  may  be  desired: 

Cost  Statement 

Comparative  Costs  for  Year-to-date 

Mining  &  Metallurgical  Statement 

Receipts  &  Disbursements 

Outstanding  Checks 

Accounts  Payable  &  Accounts  Receivable 

Trial  Balance 

Monthly  Cost  Statement  (Figs.  26  a  to  d). 

This  statement  is  made  up  from  the  total  distributed 
charges  for  the  month  as  taken  from  the  General  Distribution 
record.  Working  costs  are  based  upon  the  cost  per  di*y  ton 
mined  or  per  dry  ton  treated  at  the  reduction  plant,  and  also 
upon  the  cost  per  unit  involved  in  any  particular  class  of  work, 
as  per  foot  of  development  work,  per  ton  of  ore  stoped,  etc. 
In  the  example  shown  in  Figs,  26  a  to  d,  an  average  working 
cost  per  foot  for  Dead  Work  has  not  been  extended,  as  this 
account  often  includes  charges  for  work  not  measured  in 
terms  of  lineal  feet,  as  shaft  stations,  etc.     The  cost  figures 

76 


MINE  BOOKKEEPING 


77 


Ore  milled,  tons 4100 

Ore  stoped,  tons 3240 

Dead  work,  feet 428.0 

Development,  feet 812.8 


San  Antonio  Mining  Co. 
Month  of  Jane,  192- 


Dead  work 


No. 


Labor 


Sup- 
plies 


Sun- 
dries 


Total 


Per 

ton 
nulled 


Breaking  ground .  .  .  . 

Timbering 

Pumping 

Tramming 

Hoisting 

Drills  &  compressors 
Tool  sharpening 

Total 


01 
02 
03 

A 
B 
C 
D 


827.40 
39.34 

263.18 
32.70 
22.45 
28.70 


1213.77 


628.10 
103.18 

7.45 

3.77 

29.93 

28.16 


800 . 59 


15.75 
31.97 


47.72 


1455 . 50 
142.52 

270.63 
52.22 
84.35 
56.86 


0.355 
0,035 

0.066 
0.012 
0.021 
0.014 


2062.08 


0.503 


Development 


Per 
foot 


Breaking  ground .  .  .  . 

Timbering 

Pumping 

Tramming 

Hoisting 

Drills  &  compressors 
Tool  sharpening 

Total 


11 
12 
13 
A 
B 
C 
D 


1013.26 
42.02 

270 . 34 
60.47 
49.55 
33.20 


1468.84 


671.00 
145.34 

13.50 

6.97 

56.60 

32.60 


926.01 


29.09 
64.90 


93.99 


1684.26 
187.36 

283.84 
96 .  53 

171.05 
65.80 


2488 . 84 


0.411 
0.046 

0.069 
0.024 
0.042 
0.016 


0.607 


2.072 
0.230 

0.349 
0.119 
0.211 
0.081 


3.062 


Stoping 


Breaking  ground .  .  .  . 

Timbering 

Tramming 

Hoisting 

Drills  &  compressors 
Tool  sharpening 

Total 


21 
22 
A 
B 
C 
D 


1728.28 

135.80 

655 . 86 

202 . 45 

64.88 

49.36 


2836.63 


775.73 
179.20 
39.70 
23.35 
86.53 
48.37 


1152.88 


97.06 
92.33 


189.39 


2504.01 
315.00 
695 . 56 
322.86 
243.74 
97.73 


4178.90 


0.611 
0.077 
0.170 
0.079 
0.059 
0.024 


1.019 


Per 

ton 

stoped 


0.773 
0.097 
0.215 
0.100 
0.075 
0.030 

1.290 


Mine  general 


Supervision 

Mtce.  timbering 

Mtce.  pumping  &  draining 

Track  &  supplies 

Steel 

Mine  miscellaneous 

Total 


31 
32 
33 
34 
35 
36 


456.93 
42.70 
35.60 


535.23 


17.06 

38.56 

10.02 

162.52 

107.68 


335.84 


473.99 

81.26 

45.62 

162.52 

107.68 


871.07 


0.116 
0.020 
0.011 
0.040 
0.026 


0.213 


Remarks: 


Accountant 


Supt. 


Fig.  26a. — Monthly  Cost  Statement. 


78 


MINE  BOOKKEEPING 


Ore  milled,  tons . . . . 
Ore  cyanided,  tons. 


.4100 
.4183 


Sav  An'tonio  Mixing  Co. 
Month  of  June,  192- 


Ort  treatment 


No. 


Labor 


Sup- 
plies 


Sun- 
dries 


Power 


Total 


Per 

ton 

milled 


Milling 


Supervision 

Crushing 

*  Conveying  &  sorting 

Stamping 

Amalgamation 

General  maintenance.  . 

Miscellaneous 

Total 


41 
42 
43 
44 
45 
46 
47 


125.00 
53 .  34 
303 . 58 
330 . 74 
243.96 
70.14 


7.15 

33 .  22 

1430.94 

44.54 

146.78 


1126. 76]  1662. 63 


94.60 

9.46 

378.40 


125.00 
155.09 
346 . 26 
2140.08 
288 . 50 
216.92 


482.46 


0.030 
0.038 
0.084 
0.522 
0.070 
0.053 


3271.85 


0.797 


*  Sorted  out  916  tons  waste. 


Cyaniding 

Per 

ton 

treated 

Supervision 

451 
452 

125.00 
13.34         0.98 

47.30 

125.00 
61.62 

0.030 
0.015 

0.029 

Classification 

0  015 

Concentrates  treatment. .  . 

453 

45.00    286.86 

47.30 

379.16 

0  092 

0  091 

Sands  treatment 

454 

78.36,   640.22 

94.60 

813.18 

0.198 

0   194 

Slimes  treatment 

4.55 

94.42 

693.52 

359.50 

1147.44 

0  2S0 

0  274 

Precipitation 

456 

7.00 

419.80 

426.80 

0.104 

0    102 

Cleanup  &  smelting 

457 

6.48 

126.92 

133.40 

0  033 

0  032 

General  maintenance 

458 

20.58 

3.52 

24.10 

0  006 

0  006 

Miscellaneous 

459 

1.96 
2173.78 

1.90 

0  000 

0  000 

Total 

390 . 18 

548.70 

3112.66 

0.758 

0.744 

Total  ore  treatment .  . 

1516.94 

3836.41 

1031.16 

6384.51 

1.556 

Marketing  bullion 

Transportation 

Insurance 

51 
52 
53 

7.50 

245.20 

153.00 

97.60 

252.70 

153 .00 

97.60 

0.061 
0.037 
0.024 

Assay  charges 

Total 

7.50 

495.80 

503.30 

0.122 

Remarks: 


Accountant 


Supt. 


Tig.  2Gb. — Monthly  Cost  Stateuieiit. 


MINE  BOOKKEEPING 


79 


Ore  milled,  tons 4100 


San  Antonio  Mining  Co. 
Month  of  June,   192- 


General  expense 


No. 


Labor 


Sup- 
plies 


Sun- 
dries 


Power 


Total 


Per 

ton 
milled 


General  office 

Surveying 

Assaying  &  sampling.  . 

Hospital 

Legal 

Taxes 

Insurance 

Boarding  house 

Policing 

Stable 

Building  maintenance . 

Water  supply 

Lighting 

Telephones 

Roads 

Tools  account 

Shop  expense 

General  miscellaneous. 

Total 


61 

62 

63 

64 

65 

66 

67 

68 

69 

610 

611 

612 

613 

614 

615 

616 

617 

618 


1025 
175 
155 

77 
75 


32 

76 
52 
17 
12 

25 
14 

18 
61 


14  41.09 
49  9.75 
70  143.14 
90  5.46 
00 


1820 


52  154 

60 

06 

44 
86 


.10 
80 

08 
J55 

04 


18 

1.62 

63.72 

69.76 

17.60 

3.40 

14.50 

10.34 

103.20 

7.40 

0.40 


645 . 56 


57.60  (Or.) 
420.00 
160.20  (Cr.) 

54.90  (Or.) 


147.30 


9.46 


141.90 


18.92 
26.57 


196.85 


1066.23 

185.24 

308 . 30 

25.76 

75.00 

420 . 00 

26.50 
78.22 

115.78 
32.30 
30.46 

145.30 
39.60 
25.14 

103.20 
44.40 
88.32 

2809.75 


0.260 
0.045 
0.076 
0.006 
0  018 
0.102 

0.006 
0.019 
0.028 
0.008 
0.007 
0.035 
0.010 
0.006 
0.025 
0  Oil 
0.022 


0.685 


7 

78.40 

78.40 

0.019 

Furniture  &  fixtures 

8 

42.15   1 

1                ! 

42.15 

0.010 

Constructions  &  improvements 

9 

Bunkhouse  jf3 
Superstructure . 


945 


Total . 


190.40    489.30 


14.60 


190.40  I   489.30    14.60 


694 . 30 


694 . 30 


0.169 


0.169 


Remarks: 


Accountant 


Supt. 


Fig.  26c. — Monthly  Cost  Statement. 


80 


MINE  BOOKKEEPING 


Ore  milled,  month 4100 

Ore  milled,  year  to  date 24260 


Sa.v  Antonio  Mining  Co 
Month  of  June,  192- 


Summary 

Labor         ^HP-          f^ii- 
plies          dries 

Power 

Total 

Per  ton 
milled 

Operating  expense 

Dead  work 

Development 

Stoping 

Mine  general 

Ore  treatment 

Marketing  bullion 

General  expense 

Total  operating  expense. 


1213.77 
1468.84 
12836 .  63 
635.23 
1516.94 
7.50 
1820.04 


9398.95 


800 

59 

926 

01 

1152 

88 

335 

84 

3836 

41 

645 

56 

7697 

29 

495.80 
173.87 


47.72 

93.99 

189.39 

1031.16 

170.28 


669.67     1532.54 


2062 

08 

2488 

84 

4178 

90 

871 

07 

6384 

51 

503 

30 

2809 

75 

19298 

45 

0 .  503 
0  607 
1.019 
0.213 
1 .556 
0.122 
0.685 
4.706 


Capital  charges 

Live  stock  &  vehicles 

190.40 

78.40 

42.15 

489.30 

14.60 

78.40 

42.15 

694.30 

0  019 

Furniture  &  fixtures 

0  010 

Constructions  &  improvements  .  . 

0.169 

Total  capital  charges 

190.40 

609.85 

14.60 

814.85 

0.198 

Grand  total 

9589.35 

8307.14 

684.27       1532.54 

20113.30 

4.904 

Financial  statement 

Month 

Year  to  date 

Total 

Per  ton 

Total 

Per  ton 

Operating  revenue 

Bullion  production  per  mine  assays 

Adjustment  for  liquidations  received 

Operating  expense 

Operating  revenue 

43337.50 

19428.15 
23909.35 

10.85 

4.74 
6.11 

248350.90 

842 . 30 

119140.70 

130052.50 

10.24 
0.04 
4.91 

5.37 

Non-operating  revenur 

Store  profit  for  year  to  date 

Misc.  income  &  charges 

Interest  on  bank  deposits 

Non-operating  revenue 

otal  incc 

Capital 

Surplus 

Remarks: 


5420.00        0.22 

142  JO 0lO1_ 

5562.10        0.23 


Total  income 

23909.35 

6.11 

133614.60 

5  60 

Disposition  of  income 

Capital  charges 

814.85 
23094.50 

0.20 
5.91 

8392 . 12 

0  35 

Surplus 

127222.48 

5.25 

Accountant 


Supt, 


Fig.  2M. — Monthly  Cost  Statement. 


MINE  BOOKKEEPING  81 

used   are   based    upon   results   from   operations   in    Central 
America. 

Comparative   Costs  for  Year-to-date   (Fig.  27). 

All  cost  data  appearing  upon  the  monthly  Cost  Statement 
is  posted  to  small  tracings  of  the  same  size  as  is  used  for 
the  Cost  Statement  forms  (standard  letter  size),  and  copies 
of  these  are  included  in  the  Monthly  Statements.  These 
sheets  furnish  a  comparison  of  the  monthly  costs  during  the 
year,  so  that  a  variation  from  the  normal  costs  for  any  item 
will  be  noticed  at  once.  The  foreman  of  each  department  is 
supplied  with  the  sheets  showing  the  results  from  the  work 
under  his  charge,  and  he  is  encouraged  to  make  a  close  study 
of  his  working  costs.  This  plan  will  do  much  to  stimulate 
interest  in  keeping  down  operating  expenses;  it  gives  every 
foreman  an  incentive  to  work  for  better  results  and  to  establish 
a  creditable  cost  record  for  his  department. 

Mining  &   Metallurgical  Statement  (Figs.  28  a  &  6). 

This  statement  shows  the  total  advance  made  in  the 
headings  during  the  month,  the  number  of  tons  of  ore  stoped, 
the  total  ore  production,  etc.  It  also  outlines  the  ore  treat- 
ment, with  all  information  available  for  checking  up  the 
actual  results  realized,  with  the  calculated  results  as  indicated 
by  the  daily  routine  mill  assays. 

Receipts  &   Disbursements. 

This  statement  is  a  summary  of  all  cash  transactions  for 
the  month,  as  taken  from  the  Cash  Journal. 

Outstanding  Checks. 

The  bank  will  render  a  monthly  statement  to  the  company, 
showing  deposits  received,  checks  cashed  and  balance  on 
deposit.  The  checks  cashed  during  the  month  are  cancelled 
and  returned  to  the  company  with  the  statement;  these  are 
checked  off  in  the  Cash  Journal  with  the  checks  sent  out,  and 
a  list  is  made  of  Outstanding  Checks.  The  sum  of  the  Cash 
Journal  bank  account  balance  and  the  total  amount  of  the 
checks  outstanding  must  give  the  balance  of  the  bank  state- 
ment for  the  same  period. 

6 


82 


MINE  BOOKKEEPING 


u    ■t.' 

1 
.    1 

Ave  raj 

Currei 

Yeai 

1 

I 

— V 

o             1 

u           ii 

11 

L, 

-      -T- 



1 

Feb. 

L 

L 

-i-    — 

— 

1 
1 

1 

—  + 

1 

1 
1 

•                      h 

c 

PS 

i 

1 
1 

1 
1 
1 
1 

o       '^ 

1 
1 
1 
1 

1 
1 
1 

Averag 

Previou 

Year 

1 

1 
1 

\k 

1 
1 
1 

h 
z 

w 

Oh 

o 

w 

> 

w 
Q 

i 

Ii 

CO 

Pi, 

a. 

s 

C/3 

to 

Per  Foot 
Labor 

CO 

<a 

a. 
s 

CO 

CO 

CO 

1 
1 
1 

^     1 

o    1 

fc.     1 

"^  ! 

Breaking 
Ground 

Tramm- 
ing 

03 


u 

c3 
O 


u 

o 


m 

O 

O 

<s 
> 

-u 
03 
Ii 

03 
O. 

s 

o 

o 


d 

fc4 


MINE  BOOKKEEPING 


83 


Ton  =  2000  lb. 
Au,  $20.67  per  oz. 
Ag,  $1.00  per  oz. 


San  Antonio  Mining  Co. 
Mining  &  Metallurgical  Statement 
Month  of  June,  192- 


Month 

Year  to  date 

Advance  in  feet 

Dead         Develop- 
work      1      ment 

Total 

Dead        Develop- 
work            ment 

Total 

208.0 
220.0 

812.8 

1020.8 
220.0 

963  . 0 
792.0 

3970.6 

4933.6 

Drainage  tunnel 

792.0 

Total 

428.0 

812.8 

1240.8 

1755.0 

3970.6 

5725.6 

Ore  production 


Dry  tons 


Ore  milled 

Less  broken  ore  on  hand  June  1st ...  . 

Difference 

Broken  ore  on  hand  July  1st 

Total  ore  production  during  month. 

Less  ore  from  development 

Ore  stoped  during  month 


4100 
1430 


2670 
1590 


4260 
1020 


3240 


Month 

Year  to  date 

Stamping  record 

Running 
time 

Dry  tons 
crushed 

Running 
time 

Dry  tons 
crushed 

Full 
days 

% 

Total 

Rate  per 
full  day 

Full 
days 

% 

Total 

Rate  per 
full  day 

28.5 

95.0 

4100 

143.9 

170.7 

94.3 

24260 

142.1 

Amalgamation 

Au 

Ag 

Total 

Total  assay 
value, 
month 

Bullion 

recovered, 

month 

Total  assay 

value, 

year  to 

date 

Bullion 

recovered, 

year  to 

date 

Mill  heads 

$9.47    $2.26  811.73 
4.52      2.01       6.53 

48093.00 
26773.00 
21320.00 
44.3 

20167.50 
41.9 

276432.00 
156669.60 
119762,40 
43.3 

Plate  tails 

Indicated  recovery 

%  indicated  extraction . 

4.95 
52.3 

0.25 
11.1 

5.20 

116476.90 
42.1 

Cyanide  plant,  tonnage  statement 

Concentrates 

Sands 

Slimes 

Total 

On  hand,  June  1st            

3.85 
26.28 

515 
2204 

390 
1870 

909 

Received  during  month 

4100 

Total 

Less  on  hand,  July  1st 

30.13 
3.04 

2719 
463 

2260 
360 

5009 
826 

Tonnage  treated  during  month 

Tonnage  previously  treated 

27.09 
151.17 

2256 
10426 

1900 
9563 

4183 
20140 

Total  tonnage  treated,  year  to  date 

178.26 

12682 

11463 

24323 

Remarks: 


FiQ.  28a. — Mining  and  Metallurgical  Statement. 


Supt. 


84 


MINE  BOOKKEEPING 


Ton  =  20001b. 

Au,  S20.67  per  oz. 

Ag,  $1.00  per  oz. 

Ore  milled,  month,  4100,  year  to  date  24200 


San  Antonio   Mining  Co. 
Mining  &  Metallurgical  Statement 

Month  of  June,  192- 


Cyaniding 

Au 

Ag 

Total 

Total  assay 
value, 
month 

Total  assay 

value, 
year  to  date 

Concentrates,  tons 
27.09 

Heads 

Tails 

Recovered  by  assay. 
%   recovered  by  as- 
say   

S30 . 76 

1.21 

29.55 

96.1 

$12.36 

2.09 

10,27 

83.1 

$43.12 

3.30 

39.82 

1168.12 

89.40 

1078.72 

92.3 

7486.92 

552.00 

0934 . 32 

92.6 

Sands,  tons  2256 


Heads 

Tails 

Recovered  by  assay . 
%   recovered   by  as- 
say   


4.67 
0.39 
4.28 

91.6 


1.81 
0.69 
1.12 

61.9 


6.48 

1.08 
5.40 


14618.88 

2436.48 

12182.40 

83.3 


80530.70 
12935.64 
67595.06 

83.9 


Slimes,  tons  1900 

1 

Heads 

4.46 

1.53 

5.99 

11381.00 

68778.00 

Tails 

0.29 

0.56 

0.85 

1015.00 

9514.29 

Recovered  by  assay . 

4.17 

0.97 

5.14 

9766.00 

59263.71 

%   recovered   by  as- 

say   

93.5 

63.4 

85.8 

86.2 

Month 

Year  to  date 

Cyaniding  summary 

Dollars  per 
ton  treated 

Total  value 

Dollars  per 
ton  treated 

Total  value 

Heads 

6.49 
0.99 
5.50 

5.54 

27168.00 

4140.88 
23027.12 

84  , 8 
23170  00 

85.3 

6.45 
0.95 
5.50 

5.42 

156795  62 

Tails 

23002  53 

R<;covered  by  assay 

%  recovered  by  assay 

BtiUioii  recovered 

".'u  bullion  recovered 

133793.09 
85 . 3 

131874. (H) 
84.1 

Production  summary  on  basis  of  ore 
milled 

Dollars  per 
ton  ore 
milled 

Total  value 

Dollars  per 
ton  ore          Total  value 

milled 

Mill  heads 

„      ,      ,.        /  mill   bullion 

Production  <             .  ,        ,,,,,. 

[  cyanide   plant  bullion.  . 

U  .73 

5.20 

5.65 

10.85 

48093.00 

20107.50 
23170.00 
43337.50 

1 1  .  39 

4.80 
5.44 

10.24 

276432.00 

110470.90 
131874. (H) 

total  production 

248350.90 

Total  recovery  by  mill  tonnage.    .  .  . 

90 . 1  % 

80.0% 

Uemarks: 


Supt. 


Fia.    2S?>. — MiiiiliK   iind    Mot:dliirKi<:il    SlutcintMit. 


MINE  BOOKKEEPING  85 

Accounts  Payable  &  Accounts  Receivable. 

This  statement  shows  a  list  of  all  accounts  owed  by,  and 
owing  to,  the  company  when  the  books  were  closed  at  the 
end  of  the  month. 

Trial  Balance. 

The  Trial  Balance  is  a  list  of  all  active  accounts  as  taken 
from  the  General  Ledger,  with  the  total  debit  or  credit  to 
each  account.  The  balancing  of  the  total  debits  with  the 
total  credits  proves  that  the  final  accounts  are  correct. 


CHAPTER  NINE 

RECORDS  AND  REPORTS  OF  DAILY  OPERATIONS 

Summary  of  Daily  Operations:   (Fig.  29  a  &  6).^ 

This  record  presents  a  general  summary  of  the  daily 
reports  from  the  various  departments.  It  should  give  a 
complete  resume'  of  the  results  obtained  from  general  opera- 
tions and  will  be  found  very  useful  to  the  superintendent  as  a 
wall  sheet  for  constant  reference.  From  it,  a  clear  outline 
of  the  progress  of  the  work  from  day  to  day  is  at  hand;  any 
irregularities,  as  a  high  labor  cost,  variation  in  production, 
etc.,  can  be  noted  immediately  and  these  differences  should 
be  explained  by  reference  to  the  corresponding  report  of  the 
department  in  question.  The  superintendent  is  able  to 
determine  where  the  work  is  running  as  it  should  and  can 
devote  his  attention  to  the  places  where  it  is  most  needed. 
An  example  of  a  Summary  of  Daily  Operations  record  is 
shown  in  Fig.  29  a  &  h;  this  outline  will  be  enlarged  upon  in 
practice  to  cover  all  variable  factors  which  may  require 
attention. 

Daily  Reports. 

Brief  daily  reports,  covering  the  more  important  details 
concerning  the  work  and  the  results  obtained,  should  be 
required  from  the  foremen  of  the  various  departments.  All 
changes,  delays,  difficulties  encountered,  etc.,  should  be  ex- 
plained, regardless  of  verbal  reports  which  may  already  have 
been  made.  These  daily  reports  form  an  important  link 
between  the  office  and  the  actual  operations;  they  furnish  a 
means  of  definitely  fixing  responsibility  and  enable  the  super- 
intendent to  see  at  a  glance  when  the  work  is  running  as  it 
should.  Moreover,  they  afford  an  opportunity  for  the  fore- 
man to  air  his  own  ideas,  and  to  make  recommendations 

'  "Principles  of  Mine  Management"  by  Chas.  A.  Chase,  Engineering  it 
Mining  Journal,  Dec.  30,  1911. 

86 


MINE  BOOKKEEPING  87 

concerning  the  work  under  his  charge.  The  summary  of 
these  daily  reports  is  posted  to  the  Summary  of  Daily 
Operations  in  the  superintendent's  office. 

The  Daily  Mine  Report  (Figs.  30)  should  cover  those 
phases  of  the  mine  work  which  may  require  special  attention: 
the  number  of  each  class  of  workmen  employed,  approximate 
grade  of  ore  sent  to  the  mill,  etc.  The  reverse  side  of  the 
sheet  may  be  ruled  for  making  a  general  report  of  conditions, 
under  this  caption  :- 

Daily  Mine  Report.  If  sent  forward  in  blank,  mine  fore- 

man   assumes    the    responsibility  of 
Approximate  grade  of  ore  sent     reporting  satisfactory  conditions.     If 

to  mill  $ ore   is    below   grade,    state    reasons. 

List  supplies  needed  and  purpose  of 
same  on  separate  sheet. 

The  daily  report  from  the  treatment  plant  covers  the 
essential  details  of  the  process  of  ore  treatment,  with  a  state- 
ment of  difficulties  or  needs  and  recommendations  regarding 
the  work.  A  comprehensive  discussion  of  metallurgical 
records  is  beyond  the  aspirations  of  this  volume  and  examples 
of  records  covering  this  phase  of  the  work  have  been  purposely 
omitted,  as  they  could  not  be  given  in  such  form  as  to  be  of 
general  application.  A  most  important  consideration  with 
any  method  of  ore  treatment,  and  one  which  is  frequently 
neglected,  is  the  practice  of  keeping  complete  and  intelligible 
records  of  all  tests  and  experiments  which  may  be  made  in 
connection  with  the  work.  All  data  of  practical  value  should 
be  recorded  and  filed  for  future  reference,  and  copies  of  all 
such  information  should  be  forwarded  to  the  head  office. 

The  daily  foremen's  reports  are  made  out  from  the  time- 
keeper's records  and  from  reports  to  each  foreman  from  bosses 
and  workmen.  These  latter  reports  furnish  the  ultimate 
details  concerning  the  work,  for  the  information  of  the 
foreman  and  for  making  up  any  additional  data  which  may  be 
desired  at  the  general  office.  A  few  of  these  interdepart- 
mental reports  are  given  as  examples;  others  can  readily 
be  worked  out  as  their  need  becomes  evident: 


88 


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SUMMARY  OF  DAILY  OPERATIONS 

CYANIDE  PLANT— COMPLETED  CHARGES          June,192— 

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90 


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Powderman's  Report    (Fig.  31). 

A  daily  report  is  made  out  by  the  powderman,  showing 
the  quantities  of  explosives  issued.  If  a  separate  record  is 
kept  for  each  working  face,  the  Powderman's  Report  shows 
the  amount  issued  to  each  place.  The  report  is  submitted 
to  the  warehouse  clerk,  who  is  responsible  for  the  distribution 
of   the   charges   for  explosives  and  for  the  accuracy  of  the 


Daily  Mine  Report 

Date— March  9.  192- 

Cars  trammed 

Machine  shifts 

Labor  employed 

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66 

19 

18 

53 

Fig.  30. — Daily  Mine  Report. 


records  of  stocks  on  hand.  The  stocks  of  explosives  should 
be  checked  at  the  end  of  the  month  and  any  shortages  charged 
out  to  the  costs  of  the  current  operations. 

Tramming  Report  (Fig.  32). 

A  report  is  made  out  by  the  boss  trammer  of  each  shift, 
stating  the  number  of  cars  of  ore  and  waste  trammed  from 
each  working  face;  the  number  of  cars  of  ore  sent  to  the  mill, 
cars  of  waste  hoisted  and  dumped  into  old  stopes,  approximate 
distances  trammed,  etc.  This  report  gives  the  mine  foreman 
and  the  superintendent  a  definite  idea  as  to  how  much  work 
each  set  of  trammers  is  doing. 


MINE  BOOKKEEPING 


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Hoisting  Report  (Fig.  33). 

The  Hoisting  Report  is  made  out  by  the  top-lander  or 
hoistman  of  each  shift.  It  shows  the  number  of  cars  or  skips 
of  ore  and  waste  hoisted,  trips  made  for  other  purposes,  etc. 
This  report  must  check  with  the  corresponding  Tramming 
Report. 

Working  Face  Records  (Fig.  34). 

Cost  records  for  each  working  face  are  most  easily  kept 
as  estimates,  which  are  not  dependent  upon  the  general 
accounts,  although  the  totals  as  extended  for  the  month  should 
not  differ  materially  from  the  full  book  costs.  These  records 
are  used  to  determine  the  relative  cost  per  ton,  as  compared 
with  the  average  grade  of  ore  recovered,  from  the  work  in 
each  stope;  they  are  also  kept  for  each  heading,  to  show  the 
cost  of  the  work  per  foot  and  per  ton  of  ore  recovered.  As 
the  tonnage  from  any  stope  can  only  be  approximated  in  most 
cases,  it  is  evident  that  fine  details  of  cost-keeping  for  this 
work  are  not  needed.  Costs  per  foot  of  advance  in  the  head- 
ings can  be  determined  with  accuracy,  but  the  estimated 
costs  are  close  enough  for  all  practical  purposes.  Fig.  34^ 
shows  a  form  for  stope  records;  a  similar  form  should  be  used 
in  determining  costs  per  foot  of  advance  and  per  ton  of  ore 
recovered  from  development  work,  and  per  foot  of  advance 
or  per  cubic  foot  for  dead  work.  A  standard  wage  for  each 
class  of  labor  is  assumed  in  the  example  given.  At  convenient 
intervals  during  the  month,  the  totals  for  the  month-to-date 
are  added  and  the  corresponding  amounts  are  extended  to  the 
columns  under  "Estimated  Costs"  to  obtain  the  costs  per 
unit. 

1  Peele's  "Mining  Engineers'  Handbook,"  page  1277. 


CHAPTER    TEN 

MISCELLANEOUS 

Machinery  Index  (Fig.  35). 

An  index  should  be  kept  of  all  machinery  which  is  liable 
to  be  moved  about  from  one  place  to  another,  as  electrical 
apparatus,  hoists,  pumps,  etc.  A  record  of  this  kind  will 
be  found  of  particular  value  for  properties  where  the  work  is 
more  or  less  scattered.  A  complete  history  of  each  machine 
should  be  kept,  showing  where  it  has  been  used,  important 
repairs  and  replacements,  present  location,  etc. ;  minor  repairs 
need  not  be  considered.  Fig.  35  shows  a  suitable  form  of  index 
for  this,  purpose.  The  name,  local  serial  number  and  manu- 
facturer's rating  are  stated  upon  the  card,  and  a  complete 
record  of  the  machine  is  kept,  the  last  entry  showing  its 
present  location.  The  main  subheadings  of  the  index,  as 
generators,  hoists,  motors,  etc.,  are  made  by  division  cards 
tabbed  at  the  left  hand  side  of  the  index  as  indicated.  Upon 
the  upper  margin  of  each  card  of  the  index  are  divisions  show- 
ing the  different  places  where  the  machine  may  be  used,  as 
power  house,  miine,  mill,  etc.  A  movable  clip  is  fastened  upon 
the  space  showing  the  location  of  the  machine,  the  clip  being 
changed  to  indicate  the  new  location  each  time  that  the 
machine  is  moved.  When  the  card  is  in  the  index,  it  is  filed 
under  the  subheading  to  which  it  belongs,  as  generator,  motor 
etc.,  the  rows  of  clips  showing  the  machines  which  are  in  each 
place.  In  the  example  given,  the  location  of  the  marker 
shows  that  the  motor  in  question  is  at  Shaft  No.  1. 

Machine  Repair  Parts  (Fig.  30). 

For  the  upkeep  of  air  drills,  compressors  and  other  ma- 
chinery, a  large  assortment  of  small  repair  parts  must  be  kept 
on  hand,  and  it  is  important  that  the  stock  of  these  parts  is 
not  allowed  to  become  depleted.  Fig.  36  shows  a  form  for 
keeping  account  of  these  items;  the  records  are  posted  month- 

90 


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ly  from  a  separate  book  kept  at  the  warehouse,  into  which 
the  daily  issues  and  receipts  of  repair  parts  are  entered.  From 
these  records,  the  approximate  consumption  for  any  repair 
part  can  be  seen  at  a  glance,  for  guidance  in  determining  the 
quantity  to  be  kept  in  stock. 

Contract  Work. 

To  avoid  misunderstandings,  and  to  furnish  a  record  for 
future  reference,  contract  or  bonus  agreements  should  be  made 
out  upon  a  Contract  form  (Fig.  37)  which  is  signed  by  both  the 
foreman  and  the  contractor.  These  forms  should  be  stamped 
with  a  serial  number  and  should  be  made  out  in  duplicate;  one 
copy  is  filed  at  the  foreman's  office  and  the  other  at  the  general 
office.  They  should  be  filed  under  the  name  of  the  contractor 
while  in  effect,  those  no  longer  in  use  being  transferred  to 
the  back  of  the  index  and  filed  according  to  the  mine  workings 
or  other  classification  of  the  contract. 

Personal  Records  (Fig.  38). 

Every  person  to  whom  the  company  considers  giving 
employment  should  be  required  to  fill  out  a  Personal  Record 
form  when  he  applies  for  work.  These  are  placed  on  perma- 
nent record  and  a  live  file  of  men  actually  employed  is  kept; 
the  records  of  men  who  have  left  the  employ  of  the  company 
and  of  those  who  are  considered  undesirable  from  their  records 
are  placed  for  reference  in  another  file,  with  notations  as  to 
date  and  reasons  or  leaving,  reasons  for  not  giving  employ- 
ment, etc. 

Smelter  Shipments. 

When  ore  or  concentrates  shipments  are  hauled  from  the 
mine  to  the  railroad,  a  local  way-bill  should  be  used  for  the 
purpose,  similar  to  the  form  of  freight  way-bill  shown  in  Fig. 
21.  Arrangements  are  made  with  the  railroad  for  cars  by  the 
company's  forwarding  agent,  who  also  attends  to  the  loading 
and  shipping  of  the  ore.  Shipment  is  usually  made  directly 
to  the  smelter,  where  the  ore  is  weighed  and  sampled  before 
a  mine  representative.  If  the  results  of  the  smelter  analysis 
are  not  satisfactory  to  the  shipper  as  a  basis  of  settlement,  a 


100 


MINE  BOOKKEEPING 


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MINE  BOOKKEEPING 


101 


o    o 


o    o 


Name No . 


Date  Date 

applied  for  work employed . 


Class  employment  desired Employment  given . 


Rates 

1  understand  that  the  above  rate  will  continue  in  effect  until  a  definite  ar- 
rangement is  made  at  the  time-keepers*  office  for  a  change  in  rate. 

Age Nationality 


Relationship,  if  any,  to  foreman . 


In  case  of  serious  accident  notify. 


By  what  company  were  you  last  employed . 


Reasons  for  leaving 

All  of  the  above  statements  are  true  to  the  best  of  my  knowledge. 

Give  names  of  two  former  


employers  as  references 

Signed 

Address 


Employed  by Dept. 

Date  of  leaving  &  reasons 


Fig.  38. — Personal  Record  Form. 


102 


MINE  BOOKKEEPING 


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I 


MINE  BOOKKEEPING 


103 


part  of  the  smelter  sample  is  sent  to  a  customs  assayer,  who 
has  been  accepted  by  both  parties,  and  the  settlement  is 
based  upon  his  returns.  If  the  railroad  freight  rate  varies 
with  the  grade  of  ore,  as  is  commonly  the  case,  a  copy  of  the 
final  analysis  is  sent  to  the  railroad  company's  office,  as  a 
basis   for   determining  freight   charges  upon  the   shipment. 

Cost  Statement  for  May,  192-. 


No. 


61 

69 

612 

616 


901 

902 

902a 

9026 

902c 

902d 


903 

903a 

9036 

903c 

903<i 


904 


Account 


Current  month 


Totals  to  date 


Labor 


Sup- 
plies 


Sun- 
dries 


Totals 


Labor 


General  Expense: 
General  office  exp. 

Policing 

Water  supply 

Tools  account 


Totals 

Furniture  &  fixtures: 

Constructions  &  im- 
provements: 

Supply  house  &  office 
Compressor  No.  1 

Cost  at  siding. . . . 

Moving  to  property 

Foundation 

Installation 


Totals 

Hoist  No.  1 

Cost  at  siding.  . . . 
Moving  to  property 

Foundation 

Installation 


Totals 6.30 

Hoist      &      Compr. 
house 1 145  .75 


215 
36 

124 
22 


14.45 


11 

75 

93|  30.44 

14'l82.14 


398.93  227.03 
34.40 


74.51 
9.82 


44.94 


54.76 
6.30 


37.13 


14.05 

7.25 

31.56 


52.86 


1.27 


5.00 


234.56 

36,75 

155.37 

204 . 28 


5.00 


630.96 
34.40 

111.64 


2350.00  2359.82 
14.05 
7.25 
76.50 


2350.00  2457.62 

1215.88  1222.18 
1.27 


1.27  1215,88  1223.45 


87.33 


316 

168 

144 

22 


Sup- 
plies 


Sun- 
dries 


Totals 


,36      58.79 

.75 

.15|     34.64 
.141013.17 


10.00 


385,15 

168,75 

178,79 

1035.31 


651.401106.60      10.001768.00 
17.10    143.15 


160.25 


524.90  529.26 1054.16 


9 
284 
472 
111 


82 2350.00  2359.82 


51  181.31 , 
69  131.40, 
45   69.75 


465.82 
604.09 
181.20 


878.47'  382.46  2350.00  3610.93 


6 

142 

248 

97 


30 
25 
05 
18 


1215.881222.18 

16.39 158.64 

107.25 355.30 

17.42 114.60 


233.08 


493.78    141.061215.881850.72 

I  I  ! 

343.81    120.47 464.28 


Fig.  40. — Cost  Statement. 

Freight  charges  are  paid  by  the  smelter  and  deducted  when 
settlement  is  made  for  the  shipment.  When  ore  from  the 
mine  is  sorted  and  shipped,  instead  of  being  treated  as 
mined,  a  "Sorting,  Weighing  and  Loading"  account  should 
be  opened  to  take  the  place  of  the  treatment  accounts.  All 
information  concerning  ore  shipments  should  be  kept  in  one 
book ;  Fig.  39  shows  a  typical  form  for  this  record. 


104  MINE  BOOKKEEPING 

Records  for  New  Operations. 

In  starting  a  new  mining  enterprise,  a  period  of  construc- 
tion usually  proceeds  the  commencement  of  actual  mining 
operations.  In  any  case,  it  is  essential  to  a  complete  record 
of  costs  that  an  adequate  outline  for  bookkeeping  be  ready 
for  immediate  use  at  the  time  when  work  is  started.  To 
this  end,  unless  the  bookkeeping  system  has  been  worked 
out  in  advance,  tentative  forms  for  the  most  essential  records, 
as  Cash  Journal,  General  Distribution,  etc.,  may  be  made 
upon  tracing  linen  and  black-process  prints  from  these  used 
until  the  most  convenient  arrangement  for  the  work  at  hand 
has  been  decided  upon.  A  supply  of  printed  forms  for  time 
books,  material  requisitions,  etc.  should  be  provided  for  use 
until  the  permanent  office  system  has  been  installed.  Cost 
statements  during  the  early  stages  of  the  work  may  be  made 
up  without  the  use  of  printed  forms:  see  Fig.  40. 


CHAPTER  ELEVEN 

MERCANTILE  STORE  OPERATION 

This  outline  applies  to  the  operation  of  a  comparatively 
small  company  store,  where  the  store  transactions  are  carried 
on  the  books  at  the  general  office.  The  system  of  accounting 
employed  should  afford  a  positive  balance  between  the  cost 
of  goods  purchased,  as  compared  with  the  total  value  of  goods 
going  out  of  the  store  and  of  the  remaining  stock  by  inventory. 
The  problem  of  keeping  account  of  merchandise  stock  is 
more  difficult  than  in  the  case  of  warehouse  supplies,  in  that 
the  stock  of  the  mercantile  store  is  purchased  at  one  price  and 
resold  at  a  profit.  This  difficulty  can  be  most  readily  over- 
come by  charging  out  all  goods  to  the  store  department  at 
selling  prices,  which  are  fixed  for  each  shipment  of  goods  at 
the  general  office  as  received.  This  method  furnishes  a 
check  upon  the  merchandise  handled,  by  putting  the  store 
department  upon  a  one-price  basis ;  it  eliminates  the  necessity 
of  carrying  both  cost  and  selling  prices,  as  must  be  done  if 
the  stock  is  charged  out  to  the  store  department  at  cost. 

Purchase  Orders. 

Purchase  orders,  similar  to  those  used  in  ordering  ware- 
house supplies,  should  be  employed  in  ordering  merchandise 
stock  for  the  store.  A  form  by  which  the  store-keeper  can 
notify  the  general  office  of  new  merchandise  stock  needed 
should  also  be  used. 

Merchandise  Register  (Fig.  41). 

This  record  should  be  made  out  in  duplicate,  the  original 
being  held  at  the  general  office  and  a  copy  for  each  shipment 
sent  to  the  store-keeper.  The  record  contains  all  details 
concerning  shipments  of  goods  and  furnishes  the  final  cost  of 
each  item  as  deliverd  at  the  store.  The  selling  price  to  be 
charged  for  each  article  is  fixed  at  the  general  office.     An 

105 


106 


MINE  BOOKKEEPING 


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Cost 

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SAoqo  luojj   panu[juo3 


MINE  BOOKKEEPING 


107 


index  of  the  articles  appearing  on  the  Merchandise  Register 
should  be  kept,  as  an  aid  in  finding  the  records  of  past  ship- 
ments of  goods  received. 


MARY  MINING  CO., 

Merchandise   Coupon 

25146 

NOT  GOOD  IF  DETACHED 


MARY  MINING  CO., 
Merchandise  Coupon 
25146 
NOT  GOOD  IF  DETACHED 


MARY  MINING  CO., 

Merchandise  Coupon 

25146 

NOT  GOOD  IF  DETACHED 


MARY  MINING  CO., 

Merchandise  Coupon 

25146 

NOT  GOOD  IF  DETACHED 


MARY  MINING  CO., 
Merchandise  Coupon 
25146 
NOT  GOOD  IF  DETACHED 


* 

* 
* 


* 
* 
* 

* 


Good 

for 

10 

Cents 


Good 
for 
10 

Cents 


Good 

for 

10 

Cents 


Good 
for 
10 

Cents 


Good 
for 
10 

Cents 


Fig.  42. — Store  Coupon  Book. 

Record  of  Losses  and  Gains. 

A  memorandum  book  should  be  kept  by  the  store  depart- 
ment, showing  losses  and  gains  due  to  changes  in  prices  of 


108 


MINE  BOOKKEEPING 


stock  on  hand  to  conform  to  those  of  new  stock  received, 
losses  due  to  spoiled  goods  thrown  out,  to  reductions  in  prices 
which  may  have  been  necessary  to  dispose  of  unsalable  goods, 
etc. 

Coupons  (Fig.  42). 

To  avoid  the  necessity  of  keeping  an  extensive  set  of 
accounts,  credit  in  the  small  store  may  be  extended  to  the 
workmen  by  means  of  coupons,  issued  by  the  time-keeper; 
metal  checks  for  varous  amounts  are  sometimes  used  instead 
of  coupons.  The  coupons  are  ordeis  of  small  denomination 
upon  the  store;  they  are  made  up  in  book  form,  each  book 
bearing  a  serial  number  which  is  stamped  upon  every  coupon 


Cash 

Coupons 

Payrolls 

Merchandise 

Coupons 
Outstanding 

Dr. 

Cr. 

Dr. 

Cr. 

Dr.     Cr. 

Dr.    1     Cr  . 

i 

Dr.         Cr. 

1 

Coupons  received  from  printer . 
Coupons  issued  to  workmen. .  . 

Merchandise  sold 

CouDons  outstanding 

15000 

2000 
500 

7500 

7000 

15000 

7500 

9000 

?,nc\ 

10000 

8000 

7500, 

!   9000 

500 

Fig.  43. — Diagram  of  Store  Coupons  Transactions 

contained  in  it.  The  books  are  usually  made  up  in  several 
convenient  amounts.  A  Coupon  Register,  showing  to  whom 
each  book  was  issued,  should  be  kept  by  the  time-keeper, 
and  the  workmen  are  required  to  sign  this  record  for  coupons 
received.  Two  accounts  should  be  opened  upon  the  general 
office  books  for  handling  coupon  transactions;  these  accounts 
are  called 

(1)  Coupons 

(2)  Coupons  Outstanding 

The  Coupons  Account  shows  the  total  amount  of  unissued 
coupons  on  hand;  Cash  is  charged  and  Coupons  credited 
with  all  unissued  coupons  as  received.  The  Coupons  Out- 
standing Account  shows  the  amount  in  coupons  which  have 
been  issued  and  not  turned  in  at  the  store  in  exchange  for 
merchandise  by  the  end  of  the  month.  An  example  of  entries 
for  handling  the  coupons  accounts  is  given  in  Fig.  43. 


MINE  BOOKKEEPING 


109 


Bought  of  Virginia  M.&  M.  Co. 

Mercantile  Store 

Date ....No 

Name 

No.      3865  -  14 
Charge  Acct.    Slip 

FiQ.  44. — Store  Salea  Slip. 


110  MINE  BOOKKEEPIXG 

Charge   Accounting. 

Instead  of  using  coupons,  a  system  of  sales  slips  and  card 
index  of  individual  charge  accounts  is  very  satisfactory  for  a 
more  extensive  store  business,  although  more  clerical  work 
is  required  than  by  the  use  of  coupons.  A  Sales  Slip  (Fig.  44), 
is  made  out  by  the  clerk  for  each  sale,  in  duplicate  for  a  charge 
account  sale  and  in  triplicate  for  a  cash  sale.  For  a  charge 
account  sale,  the  original  sales  slip  is  held  by  the  store  cashier, 
the  duplicate  being  handed  to  the  customer  with  his  purchases 
after  the  sale  has  been  approved-i.e.,  after  the  customer  has 
been  found  to  have  a  credit  balance  to  cover  the  amount  of 
the  sale  or  has  been  identified  as  being  carried  on  open  account. 
For  a  cash  sale,  the  original  is  sent  to  the  cashier,  one  copy 
is  held  by  the  clerk  who  made  the  sale,  and  the  other  copy  is 
handed  to  the  customer.  At  the  end  of  the  day,  the  duplicate 
cash  slips  are  collected  from  the  clerks  and  checked  with  the 
cash  and  with  the  original  slips  as  sent  to  the  cashier.  A  card 
for  each  employee  is  filed  in  the  Charge  Account  Index  (Fig.  45) 
and  his  time  as  reported  by  the  timekeeper's  office  is  entered 
daily  upon  it  to  determine  his  net  credit  balance.  After  the 
end  of  the  day,  the  charge  account  sales  slips  are  arranged 
in  the  order  of  the  employees'  numbers  and  the  total  amount 
from  each  slip  is  entered  upon  the  corresponding  card;  this 
work  is  done  rapidly  by  the  use  of  an  adding  machine  designed 
for  this  purpose.  The  sales  slips  for  each  day  are  bundled 
and  filed  for  record. 

Store   Accounts. 

The  following  accounts  will  be  needed  for  handling  the 
store  business  on  the  general  office  books,  on  the  basis  of 
selling  prices: 

(1)  Merchandise 

(2)  Store 

(3)  Store  Earnings 

(4)  Store  Expense 

Merchandise. 

This  account  is  charged  with  the  cost  of  merchaiuliso 
received  and  with  the  estimated  gross  earnings  to  be  realized 


MINE  BOOKKEEPING 


111 


Employee.'.s.J^Jo.._U^ Month  oi _July 192- . 

Name           ^^^A-^SS'J^Vi 

Net  Bal.   from      g^  ^^      House      ^^  Doctor               Ware- 
previous  month                   Rent      ^^—   Bills                   Tiouse 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

Rate 

Amount 

1 

1 

1 

1 

i 

1 

i 

1 

i^ 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

31 

July  1        4.00 
1.25„ 
5.25* 

3        5.25 
2.10^ 
7.35 

6        7.35 
2.00  „ 
9.35* 

Fig.  45. — Store  Charge  Account  Index. 


112  MINE  BOOKKEEPING 

from  the  sale  of  this  stock,  as  determined  at  the  end  of  the 
month  from  the  Merchandise  Register.  The  account  is 
credited  with  the  selling  price  of  all  goods  delivered  to  the 
store. 

Store. 

This  account  is  charged  with  the  selling  price  of  all  goods 
delivered  to  the  store ;  it  is  credited  with  all  goods  going  out, 
as  sales,  spoilage  and  other  losses,  etc. 

Store   Earnings. 

This  account  is  credited  with  the  estimated  gross  profit 
to  be  realized  from  the  sale  of  goods  received;  it  is  charged 
with  all  expenses  of  carrying  on  the  business. 

Store  expense  includes  all  current  expenses  for  salaries,  sta- 
tionery, etc.  Taxes  and  insurance  are  carried  in  suspense, 
and  are  apportioned  to  Store  Expense  in  equal  monthly  in- 
stallments. They  are  handled  in  the  same  manner  as  the 
taxes  and  insurance  charges  under  the  mine  accounts.  The 
Store  Expense  Account  is  closed  into  Store  Earnings  at  the 
end  of  the  month. 

The  bookkeeping  in  connection  with  the  operation  of  the 
store  department  on  the  basis  of  selling  prices  will  be  explained 
by  considering  an  example.  In  order  to  show  the  monthly 
entries  and  also  the  method  of  balancing  the  store  accounts 
at  the  end  of  the  year,  we  shall  assume  that  a  new  store 
business  is  being  started  on  December  1st;  see  Fig.  46. 

(1)  This  entry  shows  the  cost  price  of  all  stock  received  at  the  store  to 
Jan.  1st. 

(2)  The  selling  price  value  of  the  total  stock  is  determined  at  the  end  of 
the  month  from  the  Merchandise  Register. 

(3)  The  estimated  total  unearned  gross  profit  is  the  difference  between 
the  total  cost  and  selling  prices  as  given  in  (1)  and  (2). 

■    (4)  This  entry  comprises  the  total  sales  of  merchandise  made  during  the 
month. 

(5)  Expenditures  are  debited  to  Store  Expense  as  they  occur  and  tlic 
account  is  closed  out  to  Store  learnings  at  the  end  of  the  month. 

(6)  The  total  amount  of  this  entry  is  taken  from  the  Record  of  Losses 
and  Gains  at  the  end  of  the  month. 

(7)  &  (8)  The  balance  of  the  above  entries  shows  that  Uie  store  should 


MINE  BOOKKEEPING 


113 


have  a  stock  on  hand  of  $15,970  at  the  end  of  the  year.  If  the  inventory 
shows  an  actual  stock  of  $15,900,  this  amount  is  charged  to  Merchandise 
and  credited  to  Store  to  close  out  the  accounts  for  the  year.  The  shortage 
i>5  credited  to  Store  and  charged  to  Store  Earnings. 

(9)  The  total  stock  purchased  has  cost  $20,000;  it  has  been  charged  out 


Merchan- 
dise 

Store 

Store 
Earnings 

Store 
Ex- 
pense 

Cash 

Profit 
&  Loss 

Dr. 

Cr. 

Dr. 

Cr. 

Dr. 

Cr. 

Dr.  Cr. 

Dr.       Cr. 

Dr.    Cr. 

(1)    Stock  purchased,  cost 
price 

20000 

20000 

1 

(2)  Stock  purchased,  selling 
price      ....        

25000 

25000 

(3)     Estimated     unearned 
.  gross  profits  from  total 
stock 

5000 

5000 

(4)  Goods  sold  during  Dec. 

1 

9000 

1 

9000 

1 

(5)  Store  expense 

500 

500 

500 

500 

(6)  Spoilage  &  losses 

30 

30 

(7)  Inventory,  Dec.  31  .  .  . 

15900 

15900 

(8)  Inventory  shortage,  to 
balance 

70 

70 

(9)    Estimated      unearned 
gross  profit  from  stock 

3180 

3180 

(10)  Net  profit 

1220 

1220 

Balance,  Dec.  31 

12720 

Closed 

Closed 

Closed 

11500 

1220 

(11)  Stock  on  hand,  Jan  1, 
selling  price 

15900 

15900 

(12)  Estimated     unearned 
gross      profit     from 
stock  on  hand 

3180 

3180 

Fig.   46. — Diagram   of  Store  Transactions. 

to  the  store  department  at  $25,000.  Then  the  cost  price  of  goods  on  hand 
at  the  end  of  the  year,  with  an  inventory  value  at  selling  prices  of  $15,900, 
may  be  taken  as 

^  g'rTonn^       or  $12,720,  the  amount  which  will  appear  upon  the  Gen- 
eral Trial  Balance;  the  difference  of  $3,180  is  estimated  gross  profit  not 
8 


114  MINE  BOOKKEEPING 

yet  realized,  as  the  goods  have  not  been  sold.     Accordingly,  S3, 180  is 
credited  to  Merchandise  and  charged  to  Store  Earnings. 

(10)  The  balance  of  the  Store  Earnings  account  shows  a  net  profit  of 
$1,220;  the  total  balance  of  this  account  for  the  year  is  charged  oflf  the  Profit 
and  Loss. 

(11)  At  the  beginning  of  the  new  year,  Merchandise  is  credited  and  Store 
is  charged  with  the  selling  price  of  the  stock  on  hand  as  shown  by  inventory. 

(12)  ISIerchandise  is  charged  and  Store  Earnings  credited  with  the 
estimated  gross  profit  of  $3,1^0  to  be  realized  from  the  sale  of  stock  on  hand. 

Inventories. 

Inventory  of  merchandise  stock  is  usually  taken  once  or 
twice  a  year;  the  practice  of  taking  occasional  inventory  at 
unexpected  intervals  may  sometimes  be  advisable. 


INDEX 

Accounts,  Definitions  of 12 

Outline  of 9 

Payable 18,  85 

Receivable 19,  85 

Mercantile  Store 110 

Amortization 6 

Assaying  and  Sampling 14 

Bills-of-Material 72 

Boarding  House 14 

Buildings  Maintenance 14 

Bullion 18 

Capital  Charges 5,  16 

Cash 18 

Cash  Journal 21,  24 

Vouchers 29 

Charge  Accounting,  Mercantile  Store 108 

Checks  Outstanding 81 

Pay 53 

Voucher 29 

Classification  of  Accounts 4 

Compressors,  Drills  and 15 

Constructions  and  Improvements 16,  41 

Contract  Work 99 

Contractors'  Pay-rolls 53 

Cost  Book 22,  65 

Statements 76,  104 

Costs  for  Year-to-Date 81 

Coupons 108 

Daily  Mine  Report 87 

Daily  Operations,  Records  &  Reports  of 86 

Dead  Work 12 

Depreciation 6 

Development 12 

Diagrams 11 

Direct  Charges 7,  12 

Disbursements,  Receipts  and 81 

Distribution,  General 21,  32 

Labor 21,  50 

Supplies 23,  73 

115 


116  INDEX 

Drill  Steel 13 

Drills  and  Compressors 15 

Engineering 14 

Envelopes,  Filing,  for  Cash  Vouchers 29 

Pay 53 

Force  Account  Pay-rolls 50 

Foremen's  Time  Books 48 

Furniture  &  Fixtures 16 

General  Distribution 21,  32 

Expense     13 

Ledger 21,  42 

Ledger  Accounts 42 

Mine  Accounts 9 

Miscellaneous 15 

Office 13 

Supplies 19 

Head  Office 17 

Hoisting 15 

Hoisting  Report 90 

Hospital 14 

Indirect  Charges 7,  15 

Individuals  and  Companies  Ledger 44 

Insurance 14 

Insurance  Suspense  Account 16 

Inventories 73,  114 

Invoices 44 

Invoice  Record 44 


Journal-entry  Vouchers 3 


> 


Labor  Distribution 22,  50 

Ledger,  General 21,  42 

Accounts 42 

Legal 14 

Lighting II 

Live  Stock  &  Vehicles lt> 

Local  Purchases 61 

Losses  and  Gains 107 

Machinery  Index 96 

Machine  Repair  Parts 96 

Maintenance,  Buildings 14 

Pumping  &  Draining 13 

Tiiiil)ering 13 

Tramming 13 


INDEX  117 

Marketing  Bullion 13 

Materials  Returned 72 

Mercantile  Store  Operation 105 

Merchandise 110 

Merchandise  Register 105 

Metallurgical  Statement 81 

Mine  Foremen  and  Bosses 12 

Mine  Report,  Daily 87 

Mine  Miscellaneous 13 

Mining  &  Metallurgical  Statement 81 

Miscellaneous,  General 15 

Monthly  Statements 86 

New  Operations,  Records  for 104 

Objects  in  View 1 

Obsolescence 7 

Office,  General 13 

Time  Book 47 

Operating  Expenses 7,  12 

Orders,    Purchase ,    59,  105 

Ore  Treatment 13 

Outline  of  Accounts 9 

Principal  Records ■. 20 

Outstanding  Checks 81 

Pay-checks 53 

Pay-envelopes 53 

Pay-rolls 22 

Pay-rolls,  Contractors' 50 

Force  Account 50 

Personal  Records 99 

Petty  Cash  Book 29 

Policing 14 

Powderman's  Report 90 

Power 16 

Profit  and  Loss 19 

Pumping  and  Draining,  Maintenance 13 

Purchase  Orders 59,  105 

Receipts  and  Disbursements 81 

Redistributable  Charges 7,  41 

Register  of  Supplies  Ordered 22,  62 

Requisitions  for  Bills-of-Material 72 

Warehouse 22,  70 

Roads 15 

Sampling,  Assaying  and 14 

Shop  Expense , 15 


118  INDEX 

Side  Ledger  of  Capital  Charges 44 

Smelter  Shipments 99 

Stable 14 

Statements,  Cost 76 

Mining  &  Metallurgical 81 

Monthly 76 

Stock  Books 70 

Stock  on  Hand  Index 22,  68 

Stoping 12 

Store  Account 112 

Earnings 112 

Expense 112 

Operation 105 

Summary  of  Daily  Operations 86 

Sundries 41 

Supplies  Distribution 23,  73 

Supplies  on  Hand  and  on  Order  Index 19,  61 

Surface  Foremen  and  Bosses 15 

Suspense  Accounts 5,  16 

Taxes 14 

Taxes  Suspense  Account 16 

Timbering,  Maintenance 13 

Telephones • 15 

Time  Book 21,' 47 

Time  Tickets 49 

Time-keeper's  Records 21,  47 

Tools  Account 15 

Tool  Sharpening 15 

Track  and  Supplies 13 

Tramming,  Maintenance 13 

Report 90 

Trial  Balance 44,  85 

Unclaimed  Wages 19 

Voucher  Checks 29 

Pay-checks 53 

Vouchers 21 ,  20 

Warehouse  Records 22,  67 

Requisitions 22,  70 

Water  Supply 14 

Way-bills 67 

Working  Face  Records. .      95 


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